CFTC’s Gensler Calls for Interoperability for OTC Derivatives Clearing Market
Gary Gensler, chairman of the Commodity Futures Trading Commission (CFTC), has this week elaborated on his desire for more competition to be introduced to the OTC derivatives clearing environment. Gensler testified before Congress to encourage the US government to introduce greater levels of standardisation within the market and the ability for market participants to be...
US on Course for SEC Mandated Crackdown on Ratings Agencies
Following the discussions earlier this year by US Congress to overhaul the beleaguered credit ratings agency business, this week the US Treasury released proposals aimed at reducing conflicts of interest within these agencies. The idea to change their fee structures was first tabled in April during a Securities and Exchange Commission (SEC) roundtable and these...
Buy Side Participation for ICE Trust to be Enabled in October
IntercontinentalExchange (ICE), an operator of regulated global futures exchanges, clearing houses and OTC markets, has developed a solution that provides segregation of customer funds and positions in credit default swap (CDS) clearing. The solution, which will enable buy side participation in CDS clearing, is expected to be introduced in October 2009, subject to regulatory approval....
As BClear Bows Out, Clearnet Steps into the Ring for CDS CCP Round One
European regulators have for months been championing the launch of a European-based clearing central counterparty (CCP) for the credit default swap (CDS) market and it seems their prayers may have been answered in the form of Paris-based Clearnet. The joint venture between Liffe and LCH.Clearnet has taken over the mantle of viable CCP contender, following...
Majority of CDS Products Will Never be Centrally Cleared, Says Tabb Group
In new research published today, Tabb Group says the majority of credit default swaps (CDS) products blamed for adding significant systemic risk to the global financial markets will never be centrally cleared in the United States and Europe. According to the report’s authors, Larry Tabb, founder and CEO, and Robert Iati, partner, global head of...
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...
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...