Thu, May 26, 2016
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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year