Its been my experience that many in the market are ignoring FX in the global derivatives reform debate, thinking of them as broadly exempt from new rules. This view is a bit of a red herring. Our latest research report digs into the regulations set to hit the FX derivatives market and the impact they […]
Futures On Credit-Default Swaps Seen As Natural Evolution (Wall Street Journal)
If Congress really had its way (well, the Democrats anyway) than all swaps would have been forced to look and trade like futures. If you’re reading this blog than you know that would be a classic square peg, round hole. Case in point: Eurex launched iTraxx futures some years back and no liquidity every developed. […]
A conversation with Eris Futures CEO Neal Brady
Is Clearing a Swap 200 Times as Risky as Clearing a Future?
Originally posted on TabbFORUM.com Clearinghouses don’t remove risk. In fact, they concentrate it. But that concentrated risk is mitigated by the structure of the central clearing model. More specifically, position-based margin requirements and minimum excess capital requirements for members create a cushion to absorb losses in the event a member firm collapses. That largely removes […]
The CFTC's Co-location Proposal: Not Ready for Prime Time
Also posted at TabbFORUM.com The CFTC should stick to regulating markets and not try to regulate data center providers. The recently released proposal by the CFTC does a good job of preventing providers of data center space from competing on their merits and pricing according to market demand. Don’t get me wrong, I appreciate the spirit of the […]