Counterparty Credit Risk
Managing CCR to reduce the all-in cost of OTC derivatives portfolios
Erik Petri, head of triBalance at OSTTRA, explores how counterparty credit risk (CCR) compounds the costs of trading over-the-counter (OTC) derivatives and the maintenance of derivatives portfolios, examining the nuances of OTC credit risk management,…
Execution costs still a riddle for FX participants
The sheer variety of choices hinders fair comparison
Samsung Securities gains third-party access to CLS
The securities company is the first non-bank financial institution to join CLS in South Korea
Banks move towards active compliance
Banks are taking a less passive approach and striving to spot wrongdoing early on
CLS and Markit extend FX settlement to cross-currency swaps
The currency settlement utility and global provider of financial information services join forces to tackle the growing demand for clearing solutions in the swaps market
Russian banks face struggle to access credit and PB
Sanctions have reduced Russian banks' ability to trade in wholesale markets, but CLS's plans remain on track
Relief for dealers as Basel reins in capital for cleared trades
Basel Committee addresses long-standing complaints over default fund exposures and client clearing
Prices diverge as CVA exemption remains in limbo
Dealers face pricing headache as they wait to see whether Europe's version of Basel III will exempt corporate customers from the CVA capital charge
CCP resolution plans start to take shape
LCH.Clearnet's re-launched CDS clearing service adopts a loss-sharing mechanism - in line with a "last gasp of breath" approach outlined in an Isda letter to the Bank of England
Isda to review close-out value definitions
Absence of a standard approach is stifling attempts to value termination clauses, dealers complain
Banks look to securitisation of counterparty credit risk
A number of banks are considering securitisations of their counterparty credit exposures, as they look to get their balance sheets in shape ahead of new Basel capital charges.
CCP costs keep creeping up
While US regulators consult the industry over the exemption of foreign exchange products, the systemic risks and increasing costs of using central counterparty (CCP) clearers continue to be highlighted.
Asian banks in OTC derivatives reconciliation drive
Efforts by Isda and international banks to get Asian counterparties to use portfolio reconciliation services for OTC derivatives are starting to pay off
CFTC rules increase credit risk
NEW YORK - Proposed rules to limit leverage on margin FX trading accounts at retail forex brokers will have the unintended consequence of increasing counterparty risk, according to Josh Levy, managing director at Tactical Asset Management.
The challenges of CVA
The onset of the financial crisis spurred banks to charge for counterparty credit risk in their forex dealings. But how to do that is proving theoretically and practically challenging. By John Ferry
Europe excluded from CCP talks
The exclusion of European Union institutions from a technical working group set up to review risk management standards for central counterparties (CCPs) could make it difficult for the EU to reflect those standards in its forthcoming legislation on over…
Credit concerns grow as Chinese companies shun new documentation
China derivatives market regresses on documentation standardisation
Indian banks sign up for FX forwards central clearing
CCIL forwards clearing initiative sees slow take-up
An imbalanced proposition
At the time of going to press, decisions on the future of the foreign exchange markets was still hanging in the balance, as regulators in the US debated the inclusion of forex swaps and forwards into the over-the-counter derivatives reforms.
Basel Committee reaches agreement on liquidity and counterparty risk
Reform proposal due this month