Sun, Apr 26, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

OTC2CCP eliminates $375tln in notional principal, Germany may have to back-paddle with HFT

Thursday, May 15, 2014

Komfie Manalo, Opalesque Asia:

Portfolio compression is just one positive consequence from the OTC2 CCP regulation that allowed OTC derivative market participants to eliminate more than $375tln in notional principal through 2013, said Markus-Alexander Flesch who represented Eurex in the latest Opalesque 2014 Malta Roundtable.

"From the perspective of an exchange, allow me to add some additional observations regarding regulations. On the one side, we all know that regulation could be very positive since it enforces more transparency, but on the other side, regulation can also provoke exactly the inverse," Flesch said.

Regulations can have two sides

He cited two regulations with opposite implications. "One of the biggest lessons learned as a consequence from the 2008 crisis is to increase transparency and to reduce the complexity stemming from complicated OTC structures. Therefore the born project 'OTC2CCP’ has already a very positive impact on the market and all its participants, just for the fact that bringing OTC structures into a CCP will increase transparency and reduce capital requirements," Flesch said.

Another positive consequence is portfolio compression. He described portfolio compression as recognized as best practice by the industry and it has been incorporated into the new re......................

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. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner