Tue, Sep 30, 2014
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. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is