Tue, Jul 7, 2015
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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner