Eurex has released a white paper that appears to try to further their argument that exchanges are safer than the OTC market despite the fact that their previous OTC-like credit product launch has managed to attract not a single buyer (as I outlined in a previous post ).
I have not had a chance to read the whole thing yet, but I do think that they are flogging a dead horse. Just by adding some facts and figures and outlining the risks (which we are all aware of anyway, aren't we?) is pretty unlikely to convince the broker-dealers and their buy side clients that standardised contracts are what you need. The whole point of the OTC market is that you can buy bespoke products that fit your precise requirements of your individual portfolios and risk profiles - or am I missing the point here?
Once I have read it I ... more »
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Friday, May 30
Eurex tries to gain ground on the OTC market (again)...
by
Sean Sprackling
on Fri 30 May 2008 18:54 BST
DTCC and The Clearing Corporation announce CDS Clearing for Q3
by
Sean Sprackling
on Fri 30 May 2008 18:42 BST
Yesterday, backed by 11 of Wall Street's finest, the DTCC and The Clearing Corporation announced plans for new clearing facility (full press release below). On the face of it, this sounds great, but if you dig a little bit I am none too convinced by the whole affair.
As one of my previous posts explained, the Corrigan Report is due out in a few weeks, and you can bet your bottom dollar that one of its recommendations will for a more robust clearing mechanism in the OTC markets. Regulators the world over (IOSCO included) have been making noises since the credit crunch about tighter controls, the exchanges have been jostling to get OTC business on-platform (most recently Eurex) - and this all seems to tell me that this measure may be largely cosmetic and designed to keep the regulatory wolf from the door. Another interesting point is the choice of ... more » Thursday, May 29
Asset Control upgrades data management system
by
Sean Sprackling
on Thu 29 May 2008 13:51 BST
Source: Asset Control, 28 May 2008
Asset
Control, a world-wide leader in financial data management solutions,
announced today that it has enhanced its TAPMaster data management
solution by introducing support for portfolios, swaps and money market
derivatives, and support for Markets in Financial Instruments Directive
(MiFID) reporting data. Asset Control has also been recertified by Microsoft Corp. for the third consecutive year as a Gold Certified partner, the highest level in Microsoft's international partner program, having met Microsoft's stringent requirements for staff certification, product tests and customer reference checks to maintain its Gold Certified status. Phil Lynch, Asset Control's president and chief executive officer, said, "The need to provide support for a firm's own portfolio data is becoming increasingly important to buy-side institutions. TAPMaster ... more »
Allustra announces new capabilities for its Collateral Management Software
by
Sean Sprackling
on Thu 29 May 2008 10:58 BST
This is rather an odd press release as it is pretty short on detail, but as Collateral Management is becoming increasingly important (indeed the FSA stated at the start of this year that they would be keeping a close eye on it this year) and given the lack of too many software solutions out there (and I think Allustra's is one of the best) I thought I would include it for you:
29 May 2008 In their pursuit of greater returns, investment managers are increasingly turning from traditional long-only to “130/30” strategies, which focus on using the proceeds of short selling (the X%) to fund additional long positions (the 100+X%) within portfolios. The implementation of such strategies for funds not only changes their risk profile in a major way but also introduces extra degrees of operational complexity, new infrastructure requirements, and new levels of understanding. Most significantly, this creates the ... more » Tuesday, May 27
Markit completes acquisition of Swapswire
by
Sean Sprackling
on Tue 27 May 2008 15:00 BST
London and New York, NY – Markit, a leading provider
of independent data, portfolio valuations and Over-The-Counter (OTC)
derivatives trade processing, today announced that it has completed the
acquisition of SwapsWire, the electronic trade confirmation network for
the OTC derivative markets. Markit expects to complete the full
integration of the company by July this year.
According to data from the latest Markit Metrics report, trade confirmation backlogs in credit derivatives stabilised in the first quarter this year to approximately 6,000 trades per dealer per month relative to average monthly trading volumes of 25,000 trades per dealer. However, with OTC derivative markets continuing to grow at a rapid pace, market infrastructure will remain a key concern among regulators. Jeff Gooch, Executive Vice President, Co-Head of Trade Processing and Head of Valuations at Markit, said: “The combination of the Markit and SwapsWire trade processing platforms gives us critical mass and a global ... more » |
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