Principal Trading Groups (PTGs) Set to Act as Market Makers for Interest Rate and Credit Default Swaps, Says TABB Clearing Access and ‘Click-to-Trade’ Will Make or Break PTG Swaps Market Entry Following Dodd-Frank Reform Rules Implementation NEW YORK & LONDON, July 19 2011 – Financial regulatory reform efforts covering over-the-counter (OTC) derivatives are setting the […]
Tag: derivatives
HFT makes up a third of OTC energy swap trading (FT Alphaville)
FT Alphaville picked up on the video we posted at TabbFORUM (ahead of our official press release tomorrow, July 19) regarding my new study on the entrance of prop trading firms into the fixed income swaps markets. Despite the fact that reading your own voice transcribed verbatim is a little painful, the FT does a […]
Thomson Reuters to launch OTC platforms by mid-2012 (Financial Times)
Now its official – both major market data providers are in the SEF game. Bloomberg showed as “most likely to succeed” in TABB’s SEF Industry Barometer in the spring. But admittedly that study was focused on credit and rates trading whereas Thomson Reuters is in the FX game. Regardless, both of these firms have a lot behind […]
My Senate Testimony on Swap Execution Facilities
This is my written testimony for the Senate Banking Committee hearing on July 29, 2011 focused on Swap Execution Facilities. What I actually said at the hearing was a subset of this. You can watch (rather than read) the entire hearing on the Senate Banking Committee website here. —– Chairman Reed, Ranking Member Crapo, and […]
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 […]
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 […]
Managing Liquidity Post Derivatives Reform (TabbFORUM)
In my conversation with Zohar Hod, head of SuperDerivatives US office, we discuss complications market participants will have understanding margin requirements across clearinghouses and dealers.
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 […]