The more things are changing, the more interesting it is to do research. And thankfully change doesn’t seem to stop coming. The last decade has seen the market structure geeks move their focus from swaps, to high frequency trading, to corporate bonds, to US Treasury bonds, to blockchain, to machine learning and, most recently, back… Read More »
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 »
Swap clearing is not just for the big banks. State Street’s announcement is further proof of that. With (lots of) money and a high credit rating, client clearing could be a good business for you. My upcoming research study, for which I spoke with two dozen swaps dealers, will provide more detail into how these… Read More »
TABB Group recently conducted a poll of swap market participants regarding varies issues surrounding the creation of swap execution facilities (SEF) and the proposed rules from the CFTC and SEC. This is the FT’s overview of our findings (which are currently available to clients and contributors here). The industry thinks SEFs will be good for… Read More »
Dodd-Frank talks about the swaps market as a whole – meaning all swaps. Sure, it breaks out securities based swaps and a few others, but the intention seemed to be that they wanted all swaps regulated. But as I much as I’m for the idea of not creating loopholes – intentionally or otherwise – its… Read More »
Despite the CFTC’s postponement of the SEF proposal release, debate still came on quickly as to their prescriptive approach surrounding trading model. These quotes are based on my commentary that we will publish early next week. “With liquidity so thin, under this new model the simple presence of a quote will alert the rest of… Read More »
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Interest Rate Swaps have taken over for CDS as the OTC derivative product in focus for market participants and regulators. They look to be the products that will see the biggest jump in clearing once new rules are in place and they also seem to be the first headed for more electronic trading. My two… Read More »
With the financial reform bill officially law its time to get down to details. One big area in need of clarity is OTC derivative executions which includes the soon to be defined Swap Execution Facility. This FT article goes through the ins and outs and winners and losers when it comes to SEFs. My comment… Read More »
This article provides a good overview of OTC derivative market regulation and the views of various industryparticipants. I like how I’m quoted here – gives good insight into my views on the subject: …however, most in the industry feel more regulation is pretty much a given. “Regulation of the OTC derivatives market is inevitable –… Read More »