OTC Derivatives

  • 813

    MARGIN ON UNCLEARED SWAPS: a review of the key elements that will drive margining

    With adherence to the Dodd-Frank Act and EMIR clearing requirements well underway, the attention of global regulators has turned to the non-centrally cleared over-the-counter (OTC) derivatives portion of the OTC sector. In 2011, the G20 agreed to add margin requirements for non-centrally cleared derivatives to the reform program. Subsequently, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) have been tasked with developing a set of key principles to ensure that appropriate margining practices are established for all non-centrally cleared OTC derivative transactions. Recently, the third and final iteration of the framework establishing the [...]
  • 789

    OTC TRADE DOCUMENTATION: a revolution awaits

    Until the third quarter of 2012, trade confirmations had existed on the periphery of the regulatory change agenda. Previously, the Over-the-Counter (OTC) derivative industry had been fully focused on meeting regulatory obligations in relation to swaps clearing and reporting. This all changed in a matter of weeks as the Commodity Futures Trading Commission (CFTC) in the US and the European Securities and Markets Authority (ESMA) both published final rules detailing their future requirements for this area of the market2 3. In this article, Nick Fry outlines what is being mandated by the regulators; why compliance is going to be such [...]
  • 524

    REGULATORY REPORTING: how do capital market participants assure ongoing compliance within an ever-changing regulatory landscape?

    The investment banking industry is undergoing a monumental transformation as the world’s regulators shift their focus away from exchange-traded instruments to the strict enforcement of a new regulatory regime in the historically unregulated and opaque OTC derivative market. Nowhere is this shift more apparent than in the US where the Commodities Futures Trading Commission (CFTC) is pushing ahead of the other global regulators with all four of the G20 commitments: mandated execution (trading), clearing, capital and reporting obligations. These requirements are certain to transform the investment banking industry altogether. As the industry is currently implementing a number of tactical fixes [...]