The Standard Initial Margin Model (SIMM), a methodology for calculating initial margin for non-cleared derivatives instruments developed by the International Swaps and Derivatives Association (ISDA) is a work-in-progress, confirms Scott O’Malia, ISDA CEO, in a new posting for the ISDA blog derivatiViews. The need for new initial margin calculation requirements drove the creation of SIMM… Read More >>
CME Gets New View into its Cloud via Gigamon
(Editor’s note: A self-described traffic visibility solutions provider, Gigamon is working with the CME Group, which is a collection of derivatives marketplaces, to deploy the Gigamon Visibility Platform on Amazon Web Services (AWS). The Gigamon solution offers visibility into data-in-motion within the exchange’s Virtual Private Cloud (VPC) deployed via AWS. The Gigamon Visibility Platform helps… Read More >>
ISDA Worries Firms Will Miss Margining Deadline
New Variation Margining Rules Hit March 1 Starting March 1, financial services firms will be subject to “new rules that will require them to exchange variation margin on their non-cleared derivatives trades,” but many of them may miss that deadline, says Scott O’Malia, CEO of the International Swaps and Derivatives Association (ISDA) in the Jan…. Read More >>
CME Clearing Europe Gets DCO Green Light
CME Clearing Europe (CMECE), the London-based derivative clearinghouse, was granted registration as a derivatives clearing organization (DCO) by the CFTC, making it the seventh such foreign organization to receive the designation and the 16th overall. As both an authorized central counterparty clearinghouse (CCP) under the European Market Infrastructure Regulation (EMIR) regime and a registered DCO,… Read More >>
GLEIF and ‘First Movers’ Complete LEI Process Test
GLEIF Works with First Mover LEI Issuers The Global Legal Entity Identifier Foundation (GLEIF) and five “first mover” Legal Entity Identifier (LEI) issuers have “successfully concluded a prototype exercise” that tested the end-to-end process of collecting and validating data on the direct and ultimate parents of legal entities that have an LEI, reports Stephan Wolf,… Read More >>
CFTC Penalizes Société Générale $450K for Software Glitch
The CFTC has issued a penalty of $450,000 against Société Générale SA over charges that the French banking giant failed to properly report non-deliverable forward transactions to a swap data repository (SDR), and failed to report many FX swap, FX forward, and non-deliverable forward transactions to an SDR. The cause of the problem was a… Read More >>
Buy Side Hustles to Meet Bank of Israel Deadline
(Sapient Global Markets, a consultancy for financial services and commodity markets, reports that its Compliance Management Reporting System (CMRS) complies with the forthcoming, mandatory reporting requirements of the Bank of Israel (BoI), the central bank of the Jewish state. Sapient has updated the rules engine of CMRS so that it offers a connection to the… Read More >>
Regulatory Limbo Likely as Trump Repeals Dodd-Frank
(In this second installment of a two-part series, FTF News asked the head of a New York-based financial services regulatory consulting company, Mary Kopczynski, CEO of 8of9, and her staff about the new Trump administration and its plans to dismantle the Dodd-Frank financial reform legislation. Answers from her and her team are in the Q&A… Read More >>
New Rules Mean New Ops Model for Initial Margining
(New rules for initial margining for non-centrally cleared over-the-counter (OTC) derivatives went into effect September 1 when a new margin framework took hold via the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO). Regulators around the world have been to implement changes for firms trading in these instruments. Chris… Read More >>
Five Clearinghouses Pass CFTC’s Stress Test
Key clearinghouses for derivatives markets have “ample resources to withstand extremely stressful market scenarios,” according to CFTC Chairman Timothy Massad, who was commenting upon the results of the regulator’s supervisory stress test of CME Clearing; ICE Clear Credit, ICE Clear Europe and ICE Clear U.S., all part of the Intercontinental Exchange (ICE); and LCH Clearnet…. Read More >>
