A bank collapse was the catalyst for the reforms currently underway in the OTC swaps market. Debates over liquidity killing regulations and overly burdensome implementation costs are now the norm. But guess what? The swaps market looks like a shining beacon of hope compared to the rest of the finical markets and the global economy. […]
Tag: derivatives
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 […]
My Conversation about SEFCON II with Chris Giancarlo from GFI
SEFCON II is on Monday, October 3. Chris Giancarlo who’s both the head of the WMBAA and Executive Vice President at GFI Group came in to speak with us about what we should expect to see at SEFCON II. The agenda for the event was also published today – quite a list of politicians and […]
My conversation with CFTC Commissioner O'Malia; derivative reform timelines and more
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 […]
It Takes Energy – HFT in the Energy Market
The presence of principal trading groups (PTGs) in the exchange-traded derivatives market, and their absence in thecredit and rate swaps markets, are both the cause and effect of turnover frequencies. TABB Group estimates that proprietary trading (including bank proprietary trading) accounts for 55 percent of futures trading by contract volume and 41 percent of U.S. […]
Will U.S. Default? $4.8 Billion Investment Says Yes (ABC News)
This whole debt ceiling fiasco has brought CDS back into the main stream news again. Last time that happened was – well – you remember. My quote in this story was in response to the reporters request to “explain how credit default swaps work for the average person”. That aside, it should go without saying […]
Swap-Trading Venture Folds, Unable To Get Funding (Wall Street Journal)
The slow regulatory process has its first known victim. As soon as Dodd-Frank made swap execution facilities official, entrepeurial swaps traders everywhere thought they better hurry up and start one. But as we’re seeing only those with deep enough pockets to keep operating for months (or years) with virtual no profit until regulations are in […]
Higher Frequency Swaps Trading (Video)
Here I talk with TABB Group Senior Analyst Paul Rowady about our new study looking into prop trading firms entering the swaps business. The report was also covered well by the folks over at Dow Jones – see that story here.