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 » |
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