Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Managers need to take a new look at how they manage collaterals

Tuesday, November 26, 2013

Benedicte Gravrand, Opalesque Geneva:

Advent, a firm that designs and delivers software and services for investment managers, urges those that trade in OTC derivatives to take a proactive stance ahead of the full implementations of the new rules.

"The switch to centralized clearing of derivatives is proving to be more complicated than anticipated, but fund managers ignore this change at their peril," says Advent in a new White Paper called The impact of centralized derivatives clearing. "Fortunately, greater transparency and competition in this market stands to benefit all parties."

Mandated by both the US Dodd-Frank Act and the European Market Infrastructure Regulation (EMIR), the clearing of over-the-counter (OTC) derivatives through central counterparties (CCPs) was meant to take effect at the end of 2012. However, it turned out to be more complicated than expected.

In the US, centralized clearing became mandatory for interest rate swaps in March 2013, through a three-phased approach for different types of participants. In Europe, it is still work in progress, and should be completed during 2014. Under the new rules, firms that trade 
in OTC derivatives will be required to make larger margin commitments and
 will be subject to more frequent margin calls, maybe on a daily basis. Moreover, CCPs will have different asset valuation method......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1