Following on from the furore around The SocGen Debacle, I have been reading a lot of drivel in the press about "Risk Management" and what SocGen should have been doing by people who have clearly never worked in this area. I thought it would therefore help to lay down some thoughts for Buy-Siders worried about what they should have in place.
Essentially the risks in involved in trading derivatives in your funds are not dissimilar to any other investment and can be summarised by the following:
Strategic - is the trading of derivatives in line with strategic goals for your ... more »
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Thursday, January 31
Should the Buy-Side be Worrying about their Risk Management of Derivatives?
by
Sean Sprackling
on Thu 31 Jan 2008 14:03 GMT
Monday, January 28
Scandal piles pressure on derivatives market
by
Sean Sprackling
on Mon 28 Jan 2008 13:33 GMT
Article from Financial News by Renee Schultes and Natasha de Teran with a quote from me in it;
Natasha de Terán and Renée Schultes
The €4.9bn ($7.2bn) losses made by a rogue trader at Société
Générale are likely to trigger a regulatory crackdown on the $11 trillion
(€7.5 trillion) over-the-counter equity derivatives market and on the internal
controls and operations at investment banks, according to bankers, trade bodies
and fund managers. They have also called for more formal co-operation and communication between national ... more » Saturday, January 26
Combien? - Soc Gen slips up on its own banana skin
by
Sean Sprackling
on Sat 26 Jan 2008 13:37 GMT
Now,
I was not going to comment on this as we are talking about (another)
sell-side disaster rather than a buy-side issue, but having just got
off the phone to the lovely people at Financial News I thought I would
describe what I told them...
This whole thing is pretty baffling to me (and the rest of the community) and I frankly do not believe the trail of events that Soc Gen have described. It is not beyond the realms of plausibility that a single trader with other people's passwords could fool a risk management system, but surely the accounting ... more »
December 2007 Global Derivatve Volumes from the BIS
by
Sean Sprackling
on Sat 26 Jan 2008 13:31 GMT
As ever
I'm late in getting these figures of the BIS web site (but there have a few
things going on the market that have distracted me somewhat). However, as usual
the new figures make some interesting reading; Wednesday, January 23
Microgen IVR responds to Asset Managers OTC pricing and risk compliance needs
by
Sean Sprackling
on Wed 23 Jan 2008 13:30 GMT
22 January 2008
In response to the significant levels of regulation arising from UCITS III, MiFiD and other local regulatory changes within the European Asset Management market, and the increasing use and demand for OTC derivatives to feature in portfolios managed by many Asset Management companies, Microgen has launched a new Microgen Aptitude ® based solution in partnership with NumeriX and Independent Risk Monitoring Limited (IRML).
The solution, Microgen Independent Valuation and Risk (IVR), is aimed at meeting the immediate challenges facing Asset Managers and their service providers in relation to the increasing use of OTC derivative based products. Microgen ... more » |
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