Tag: derivatives

Greece Won’t Kill CDS, Dodd-Frank Will

(also posted on TabbFORUM.com) Greece is defaulting on its loans. OK, technically, that’s not true. The official version is that Greece’s creditors have agreed to a “voluntary” haircut of 50 percent on the outstanding debt. The word voluntary is key. Because the haircut is technically voluntary, a credit event will not be triggered, which means […]

Old Trading Strategies brought to the New Swaps Market

When automated market-making meets an already liquid market backed by real money trades, arbitrage opportunities quickly follow, which is the direction most liquid portions of the swaps market are moving.  Even in this pre-regulation implementation time that continues to linger, adoption of electronic trading is finally starting to gain momentum.  Data from Bloomberg, CreditEx and […]

My Conversation with Walt Lukken, CEO of NY Portfolio Clearing and ex-CFTC Chairman

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.

ICE Clear to Offer First Clearing for Sovereign Credit Swaps (BusinessWeek)

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 […]

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, […]

Participation Request: TABB Group Swap Execution Facility Study

TABB Group is conducting a study to gauge the industry’s views on several swap execution facility issues. The study is a follow-on to research we conducting this past spring entitled Swap Execution Facilities: An Industry Barometer, which was utilized by regulators and industry participants to make key strategic decisions and to understand market perception of […]

My conversation with TriOptima about their plans after central clearing

TriOptima – now owned by ICAP – has been at the center of trade compression and portfolio reconciliation for nearly a decade. Derivatives reform rules certainly change things – trading will become more automated and clearing will bring a lot of compression into the clearinghouse. But as I’ve learned, TriOptima still is poised to sit […]