I haven’t been talking much about cloud computing lately. My life has been consumed by Dodd-Frank and swap execution facilities. But its good to switch it up. The real benefit of cloud has always been cost efficiency. Why should servers sit idle overnight when someone in Japan can use them while you sleep? We also […]
Category: In the News
The Emerging Market Resurgence: Access, Risk and Reward
This is the press release for my latest research piece focused on the emerging markets. Emerging Markets Remain Popular with Buy-Side Investors but Prime Brokers Hold Keys to the Kingdoms, Says TABB; New TABB Research Shows Investors Seek Sector- and Company-Based Investment Strategies over Emerging Market Groupings in Their Continued Search for Alpha NEW YORK […]
Silicon Valley returns to Wall Street (Financial Times)
NYSE announced recently that they’re launching a cloud computing platform aimed at financial services firms. I must admit I think they’re on to something. About a year ago I suggested in a TabbFORUM video that if someone was to create a cloud environment aimed at financial services (ideally with the backing of the relevant regulators) it could […]
How Wall Street kills financial reform rules (Fortune)
OTC derivative reform rules are going to be late. I’m not sure whose fault that is or even if its bad or good. But the politics in DC are generally unproductive in trying to find the right market structure, and the industry is right in pushing back – not to kill Dodd-Frank altogether, but because […]
Swaps Data Deal Under Dodd-Frank Wins 89% Market Share for DTCC (Bloomberg)
Last week we learned that ISDA decided they would endorse DTCC as the swaps data repository for interest rate products, essentially shutting down the repository created by TriOptima only a year or so ago. I love competition to spawn innovation and lower prices as much as anyone, but in this case I think the best […]
CFTC Rule Proposal Makes Margin Requirements More Complex (Waters)
These quotes were taken from my presentation and panel moderation at the Calypso customer event in San Francisco earlier this week. We had a great debate on the panel between LCH and CME as to who’s model was better. If we agreed anything it was that the neither model is necessarily better, they’re just different. […]
Shift to Clearing Presents CCP System Challenges (Risk)
Good article from Risk outlining the various technologies used by the CCPs. We spend so much time talking about how much the dealers are spending, how SEFs will develop electronic swaps trading and when HFT swaps trading its easy to forget how complex the technology implementation will be for the clearinghouses: “OTC derivatives trading will […]
Timing Of European Credit Default Swaps Probe Piques Interest (Wall Street Journal)
This story was posted last week, and although its a bit odd to repost the story that quoted Kevin on the Street, I thought the author Katy Burne did a great job of explaining how the providers of CDS market data do what they do. The decision to review alleged preferential treatment of certain vendors […]
Derivative Exemptions Fail to Soothe Users (Wall Street Journal)
FX swaps are exempt from new derivatives regulations in the US. Not really a surprise. This language was in an earlier version of Dodd-Frank and the geopolitical issues surrounding FX make it a very hard to thing to regulate by a single country. Not to mention the usual argument that FX functioned fine during the […]
Bank Margins at Risk as EU Probes Credit-Default Swaps Market
It seems regulators are again after the evil dealers. Since dealer to dealer trading accounts for most of the volume in the CDS market, and the dealers all invest in Markit, they must be doing something wrong – right? I just can’t see how this case has any merit, nor does the timing of the […]