I’ve done a lot of thinking about this over the past few months – is it feasible for a clearinghouse to clearing CDS of its members (say, CDS on GS debt) or of sovereign debt, especially debt of the country where the CCP sits (e.g. ICE Clear clearing CDS on US debt). Too much wrong way […]
Category: In the News
TABB Says 90% of Top-Tier Swap Dealers See Their Profits Down or Flat after Dodd-Frank Implementation
PR on my recent study: New Annual Fixed Income Industry Benchmark Study Shows 60% of Current Dealers Expect Increased Barriers-to-Entry; Basel III to have Greater Business Impact than Dodd-Frank NEW YORK & LONDON, Oct 19, 2011 (BUSINESS WIRE) — Despite the risks to liquidity posed by CFTC-proposed regulation, over the long term nearly 75% of […]
Liquidity expected to return in swaps market (Financial Times)
My summer’s work was speaking to every major swaps dealer to try and understand what they’re thinking, how they’ll take their business forward and what pending regulation will do to the swaps market. The executive summary of the report that resulted from these conversations can be found here. Today the FT wrote a story to […]
Reforms Have Swap Dealers And Brokers Considering Agency Model (Wall Street Journal)
TABB Group Fixed Income recently published two new research pieces. One for which we spoke with 23 swaps dealers about everything and anything (link here), and the other in which we took a deep dive into what an agency desk for swaps trading might look like and why it matters (link here). The short story, […]
Europe Raises Concerns About NYSE-Deutsche Börse Merger (NY Times)
I read the paper on the iPad – but I still get a kick out of being quoted in print (see page B6 of today’s NY Times). But I digress… It looks like the European’s aren’t as into the proposed NYSE/Deutsche Borse merger as the Americans are. Although details are not yet available, it seems […]
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 […]
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 […]
State Street Launches Swap Clearing Operation
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 […]
SEC probes mutual funds’ derivative use (Financial Times)
The SEC is digging into how the buy side uses derivatives. This is a logical step for them as the current rules were written well before the market became what it is today. I also suspect that as the swaps market becomes more electronic and central clearing really gets going there will be many opportunities […]
Electronic Swaps Trading Is Not a Myth – I have proof!
Also posted at TabbFORUM.com Electronic swaps trading does exist! I have proof! There’s been little proof that electronic swaps trading has taken off, leaving most of us to believe the transformation will not happen without the Commodity Futures Trading Commission’s (CFTC) rules in place. Even at soon-to-be swap execution facilities, or SEFs, where the functionality […]