Tag Archives: OTC Derivatives

Broker-dealers count the cost of compliance (Financial News)

Additional coverage of the spending that must happen for major OTC derivatives dealer to be prepared for coming OTC derivatives regulations. Kevin McPartland, senior analyst with US consultancy Tabb Group, said: “Not only must new business strategies be created, but an entire infrastructure must be revamped as the rules of the game are changing completely.… Read More »

Tech Spending to Pick Up in 2011. Thank Regulators. (Information Management)

This is further coverage of my recent research report.  Regulations are causing a headache for much of the industry, but the flip side will be all of the resulting business for consultants, tech firms, lawyers, etc. “The OTC derivatives market is in for revolutionary rather than evolutionary change,” said analyst and author Kevin McPartland. …… Read More »

TABB Says the Number of Swap Dealers Will Surge, Doubling If Not Tripling to 30 by December 2011

This is the press release for my latest research report: Top 15 OTC Derivatives Dealers Set to Spend Nearly $675 Million in 2010/2011 to Prepare Technology for Dodd-Frank OTC Derivatives Trade Execution and Central Clearing Mandates Spending May Continue into 2012 Based on Implementation Timelines Set by Regulators NEW YORK & LONDON–(BUSINESS WIRE)–With passage of… 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 »

Brokers May Account For A Third Of New Swaps Trade Venues (Dow Jones)

Dow Jones coverage of my latest research report “The Future of OTC Derivatives: Swap Execution Facilities and the New Dealer”.  Within the report I breakdown not just the open questions surrounding the definition of swap execution facility but also who will be behind these new venues.  Unfortunately this story is not publicly available online (only… Read More »

Swaps Platform Urges 'Better Than TRACE' Reporting Jumbo Trades (Wall Street Journal)

Defining a “block trade” in the swaps market is one of the many jobs of the regulators in the next few months.  As this story points out, average trade sizes for swaps change drastically based on product and market conditions making it pretty difficult to set a single number.  Maybe more important is the reporting… Read More »

Rate swap traders wait for no man (Financial Times)

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 »