Sat, Aug 1, 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: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner