Wed, Dec 7, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

TABB Group estimates buy-side firms need to deposit $2tln to comply with the new clearing requirement for swaps

Wednesday, March 26, 2014

Komfie Manalo, Opalesque Asia:

Research and consulting firm TABB Group estimated buy-side firms need to deposit approximately $2tln in cash and other eligible assets at central counterparty clearinghouses (CCPs) to comply with the new clearing requirement for swaps.

In one-to-one conversations with U.S.-based asset managers, hedge funds, banks and insurance companies dealing in interest rate swaps (IRS) and/or credit default swaps (CDS), and other industry leaders, TABB found they all gained a competitive advantage by using new, improved back-office technology, specifically risk analytics, collateral optimization and faster trading processes.

Will Rhode, director of fixed income research at TABB, who co-wrote "Margin Call: New Risk Tools for the Buy Side," with contributing analyst Sol Steinberg said in a statement, "Capital is a scarce resource that cannot be squandered by overestimating a margin call. Efficient collateral usage will become an integral, growing factor in a firm's investment and hedging strategy as improved risk analytics come of age."

An estimated 33% of the firms said they selected their FCM (Futures Commission Merchant) based on the strength of their technology platform. By integrating with the buy-side's clearing workflow, the FCM hopes to increase their stickiness and become the pr......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  3. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  4. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released

  5. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg