Barclays Bank (Barclays) has signed an agreement with JPMorgan to divest its legacy derivatives portfolio as part of its non-core rundown strategy — a possible sign that other banks may start to move assets around in order to adjust to the increasingly burdensome regulatory demands for capital requirements. Barclays officials say that “acting through Barclays… Read More >>
Asset Managers Should Quantify Their Dealer Relationships: Analyst
(Editor’s note: Asset managers should start to think about some form of quantitative benchmarking for their relationships to dealers in the credit markets, according to Sean Owens, director, fixed income research and consulting, at market research firm Woodbine Associates. Owens is also the author of a new report, “Credit Trading Dealer Liquidity: Asset Manager Views… Read More >>
JPMorgan Targets ‘Too Big To Fail’ CCPs
Do central counterparty clearing houses (CCPs) take seriously enough the suggestion — made by many analysts and market participants — that they might become “too big to fail?” That question has hung in the air for years now, ever since post-crisis regulatory reforms assigned CCPs a key role in derivatives markets. Attempts to provide an… Read More >>
Swaps Margin Rules to Slam Big Sell-Side Firms
New swap margin rules could push more derivatives trading onto clearinghouses and create a host of operational difficulties at big banks, but may leave the buy side relatively unscathed when they go into effect next year, analysts say. Last Wednesday regulators unveiled a draft proposal of the rules, which establish a minimum amount of collateral… Read More >>
New Derivatives Rules to Burden Ops
Josh Brodman must be a little nostalgic for the time—only about a year ago—when the fine print of the clearing and execution reforms for derivatives trading was still being finalized. At the time, he was an operations manager for a multi-strategy, event-driven fund with several billion under management. Life is much different now for Brodman,… Read More >>
Getting Ready for Newly Minted SEFs
The CFTC has today published the final rules for swap execution facilities (SEFs) with the Federal Register, giving swaps dealers and other firms two months to register with the CFTC for approval of their venues for cleared and executed over-the-counter transactions.Most of the new rules will become effective August 5, 2013 and the official compliance… Read More >>
