Wed, Aug 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Deutsche Börse and Eurex publish White Paper "The Global Derivatives Market – A Blueprint for Market Safety and Integrity"

Monday, September 07, 2009
Opalesque Industry Updates - White Paper provides an analysis of the status quo as well as market deficiencies in the global derivatives market to create a blueprint for market safety and integrity / Blueprint outlines ways to effectively reduce systemic risk and increase financial

Deutsche Börse and Eurex published their White Paper entitled "The Global Derivatives Market – A Blueprint for Market Safety and Integrity" today. The current political and regulatory debate in both the U.S. and Europe is an intensive discussion on how to better safeguard financial market stability as one of the necessary consequences of the financial crisis. The aim of the paper is to contribute to this debate by laying out a market structure blueprint that effectively reduces systemic risk. It resumes the discussion of Deutsche Börse’s first derivatives White Paper, published in May 2008, which provided a descriptive introduction to the global derivatives market.

Andreas Preuss, Deputy CEO of Deutsche Börse and CEO of Eurex, said: "One major conclusion of the new White Paper is that merely introducing stricter regulatory and supervisory requirements may not suffice and that a strengthened market structure with built-in principles to minimize systemic risk appears to be necessary."

Deutsche Börse and Eurex have published the new White Paper to provide interested readers with a comprehensive presentation of the subject matter. The paper discusses both the derivatives market’s resilience and its structural deficiencies against the backdrop of the crisis. It focuses primarily on the advantages of effective risk management and improved transparency, especially for OTC derivatives, to ensure that the derivatives market functions well as a whole. The blueprint provides key proposals on how to strengthen the market’s current structure:

1. Maximize the use of organized markets for derivatives trading

2. Maximize the use of central counterparties (CCPs) where trading on organized markets is not feasible

3. Bilateral collateralization of derivatives exposure, preferably handled by a neutral third party, where organized trading or use of CCPs is not suitable, and

4. Require mandatory registration of open risk positions, establishing reporting standards for all derivative contracts.

The White Paper can be downloaded from the Eurex website here.

For further information please visit www.eurexchange.com


Be

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Investing – Hedge funds feasting on Apple again, Top U.S. hedge funds up Walgreen shares; lose some taste for Apple, A look at how some of the top investors, hedge funds spent the second quarter, Blockbuster movies fuel big wins for hedge fund investors, Top hedge funds flock into Allergan amid bid backed by Ackman, Soros Fund Management exits stake in some tech companies, Jana buys FMC stake, adds to AIG, exits Sirius in quarter[more]

    Hedge funds feasting on Apple again From Forbes.com: Robert Citrone and Phillippe Laffont are two of the most prominent Tiger Cubs, hedge fund managers who once worked for legendary money man Julian Robertson’s Tiger Management. Both of them had a rough start to 2014 and sold the bulk of

  2. Legal – Pershing Square sues U.S. over Fannie Mae and Freddie Mac, Elan investors sue SAC over insider-trading losses, Lawsuit loss by hedge fund is just a cost of doing business[more]

    Pershing Square sues U.S. over Fannie Mae and Freddie Mac From WSJ.com: William Ackman's Pershing Square Capital Management LP, which has taken sizable stakes in the common shares of Fannie Mae and Freddie Mac, filed a lawsuit Thursday against the U.S. government challenging its bailout

  3. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  4. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  5. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde