ICE and CME Group Speak Out About Implications of CCPs for Derivatives Markets
Following the concerns raised by Craig Donohue, chief executive of CME Group, last month about the dangers of forcing all derivatives to be cleared electronically, CME and rival IntercontinentalExchange (ICE) have this week released a 150 page report on the subject. The report details the legislative and regulatory action that may be needed in order...
Formal Working Groups Needed to Tackle Downstream Data Issues, Say Majority of Readers
Interoperability and integration between downstream systems and centralised data management systems has been an issue for some time and last year’s events have brought it into the spotlight. According to the results of our latest Reference Data Review reader poll it is not just the regulators that are concerned about this area, a lot of...
Concerns Raised About Asian CCP for OTC Derivatives
The rise of the clearing counterparty (CCP) seems unstoppable at the moment. Not only are efforts being made in Europe and the US to move OTC derivatives onto central clearing platforms with a view to reducing counterparty risk, Asia has got in on the act too. This news has not been welcomed by all parties...
Eurex and ICE Aim for European CCP Launches by End of the Month
Against the background of a shifting regulatory framework, the European central counterparty (CCP) race for the derivatives market is heating up. NYSE Liffe is considering dropping out of the race altogether, whereas Eurex Clearing and IntercontinentalExchange (ICE) are planning to launch their offerings by the end of the month deadline, which was set by the...
CFTC and SEC Divvy up Derivatives Pie, CME’s Donohue Expresses Concern About Illiquid Derivatives
Following a brief hiatus, the turf war is back on between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Just how the two regulators will divide up the oversight of the derivatives market is currently being debated across the industry and could have wide ramifications for those involved in the...
ICE Trust US Passes US$1 Trillion CDS Clearing Milestone
IntercontinentalExchange’s (ICE) ICE Trust US (ICE Trust) has passed the US$1 trillion milestone in cleared credit default swaps (CDS) since operations began on 9 March 2009. Open interest at ICE Trust currently stands at US$145 billion, representing an 86% reduction in notional value outstanding. ICE Trust also set a weekly clearing record of US$247 billion...
SunGard Launches New Clearing Gateways for Post-trade Derivatives Solutions
In order to accommodate the changes going on in the area of derivatives clearing, SunGard is planning to launch a series of new derivatives clearing gateways throughout the course of this year for its post-trade derivatives processing solutions. Solutions such as GL Clearvision, GL Ubix and GMI will therefore include new integrated gateways in order...
DTCC Applying for Limited Trust Status for Trade Information Warehouse, Plans European Subsidiary
The Depository Trust & Clearing Corporation (DTCC) has filed applications to establish a limited purpose trust company that will house the functions of its Trade Information Warehouse for credit derivatives. The vendor has taken such a step to meet the enhanced risk and regulatory requirements of the current market, says Donald Donahue, DTCC chairman and...
HSBC USA Joins ICE Trust as a Clearing Member for CDSs
IntercontinentalExchange (ICE) has added HSBC USA as a clearing member of its clearing counterparty (CCP) for the credit default swap (CDS) market, ICE Trust. The CCP, which launched on 9 March, was the first contender in the US market to receive regulatory approval from the Federal Reserve and the Securities and Exchange Commission (SEC) and...
UK FSA Gives NYSE Liffe Green Light to Launch European CCP in July
The UK Financial Services Authority (FSA) has granted NYSE Liffe approval to launch a new central clearing counterparty (CCP) for its London derivatives market. The CCP, which will be dubbed Nyse Liffe Clearing, is due to begin operations on 27 July 2009, subject to a period of review by members of its proposed documentation. The...