Tag Archives: Clearing

My conversation with TriOptima about their plans after central clearing

TriOptima – now owned by ICAP – has been at the center of trade compression and portfolio reconciliation for nearly a decade. Derivatives reform rules certainly change things – trading will become more automated and clearing will bring a lot of compression into the clearinghouse. But as I’ve learned, TriOptima still is poised to sit… Read More »

Tech upgrade needed for derivatives clearing (Financial Times)

The FT did a great job covering TABB Group’s new research piece looking at the technology challenges facing clearinghouses and dealers as they prepare for central clearing mandates.  Read the full story here.   And the press release: TABB Says Dealers and Clearinghouses Need to Make Huge Investments and Upgrades to Current Clearing Technology NEW… Read More »

LSE confirms in exclusive talks with LCH.clearnet (Wall Street Journal)

It seems that LCH.clearnet has been sale forever – well, at least for the last few years.  It seems we might finally be getting somewhere.  Although in my eyes the prize to be won is Swapclear, the LSE’s motives are different.  They want access to the equity and listed derivatives clearing that LCH would bring… Read More »

Is Clearing a Swap 200 Times as Risky as Clearing a Future?

Originally posted on TabbFORUM.com Clearinghouses don’t remove risk. In fact, they concentrate it. But that concentrated risk is mitigated by the structure of the central clearing model. More specifically, position-based margin requirements and minimum excess capital requirements for members create a cushion to absorb losses in the event a member firm collapses. That largely removes… Read More »

Putting Counterparty Risk Back in its Cage (Risk Professional Magazine)

I wrote an article in this month’s Risk Professional Magazine discussing the current state of counterparty risk concerns in the financial markets following the credit crisis and the passage of Dodd-Frank.  Please feel free to post your comments are send them to me directly at kmcpartland@tabbgroup.com.  A short blurb: The failures of Bear Stearns and Lehman… Read More »

Smaller Dealers Ponder Implications Of Goldman Clearing Move (Wall Street Journal)

Goldman formally announced yesterday its new OTC derivatives clearing unit – Derivatives Clearing Services.  This is no real surprise as clearly the major dealers are getting ready to help their clients navigate the new, more complicated world.  Further, I’m sure we’ll see similar announcements in the coming week from Goldman’s competitors. This article looks into whether GS… Read More »