The biggest finding in our latest report on FX electronic trading was nothing. Our 1500+ interviews with global FX users showed continued growth in electronic trading (74% of users trade FX on the screen), growth in execution algorithm usage (expecting 65% growth in 2014) and high hedge fund use of the two. But those data […]
The year 2013 will likely go down as the year of mandatory clearing. Once ignored by eager financial market professionals as boring back-office stuff, collateral management, credit limits and all other things clearing stood front and center in 2013 as swaps went from a 10-day clearing cycle to a 10-second clearing cycle. Given the progress […]
Its no secret that CME is one of the few firms in contention to be a major interest rate swap and CDS clearinghouse. This is a promotional video from CME that I make a quick cameo in, talking about the eventual growth in demand for swaps as the industry gets past the short term pain […]
I recently spoke with John McPartland, a Senior Policy Adviser at the Chicago Fed (and no, we can’t seem to find a direct relation although it seems there must be one somewhere). Here we discuss the implications of MF Global on the clearing model going forward; was it simply fraud or does it point out […]
MF Global and the Euro crisis have made people think about counterparty risk again. Counterparty risk concerns are good for clearing, and Swapclear US is all over it. Here are I talk to its US head Dan Maguire about their enhanced functionality, success to date and the “fun” Dan had living through Lehman.
A few months back we put out a research piece on clearing technology, and how despite a lot of work over the past few years, a big investment is still needed to bring OTC clearing to where it needs to be. And thankfully for those that sell clearing technology, regulations and continued fear of counterparty […]
Certainty of clearing is turning into one of the hottest derivative reform debates. The crux of the issue is how can swaps traders be sure that when they execute on a SEF the trade will be accepted for clearing. In most other exchange-like markets the vertical integration makes this a moot point. If you trade […]
My conversation with Telis Demos at the Financial Times in NY; we discuss dealer profitability following derivatives reform and how electronic trading could ultimately lead to higher profits. (Click the image below to watch.)
Having been on both sides as a regulator and now an industry participant, Walt’s perspectives are fascinating. Here we talk about NYPC’s success to date, how the potential NYSE/DB merger could impact his business and when he thinks the CFTC will get the rules finalized.
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 […]