Also posted at TabbFORUM and JLN Interest Rates. Whatever you think of credit default swaps after the financial crisis and global recession that ensued, they did have some worth: people who bought them were protected against what turned out to be real risk “credit events.” So what if we were to take their intrinsic value […]
Tag: OTC Derivatives
Putting Counterparty Risk Back in its Cage (Risk Professional Magazine)
I wrote an article in this month’s Risk Professional Magazine discussing the current state of counterparty risk concerns in the financial markets following the credit crisis and the passage of Dodd-Frank. Please feel free to post your comments are send them to me directly at kmcpartland@tabbgroup.com. A short blurb: The failures of Bear Stearns and Lehman […]
CFTC Is Said to Propose That Banks Own 20% of Credit Swaps Clearinghouses (Bloomberg)
The Lynch Amendment is back. The CFTC is expected to release its first set of proposed rules related to OTC derivatives reform this Friday and it is expected that those rules will include limits on dealer ownership of clearinghouses (among other things). I get the logic, but from what we know of the expected proposal […]
WMBA, Americas Announces Panel Structure For Swap Execution Facility Conference October 4, 2010
CFTC Chairman, Gary Gensler, Other Key Regulators and Industry Leaders To Discuss Trends and Outlook in Wake of Dodd-Frank Wall Street Reform Act NEW YORK–(BUSINESS WIRE)–Wholesale Markets Brokers’ Association, Americas (WMBAA) is pleased to announce panel information for its inaugural Swap Execution Facility conference which will be held in Washington, D.C. on October 4, 2010 […]
Front Row Seat at the SEC, CFTC Hearing on SEFs
Also posted on TabbFORUM.com Wall Street (which includes yours truly) was in Washington on Wednesday (Aug 15) to discuss Swap Execution Facilities with the Securities and Exchange Commission and the Commodity Futures Trading Commission. I wasn’t the only one walking the block between Union Station, where the express train from New York arrives, to the […]
Goldman Alums To Launch Equity SEF (Derivatives Week)
This is the first announced equity swap focused SEF I’ve come across. The people at the help of this company come from Goldman Sachs electronic trading and have an interesting approach that is worth keeping an eye on. I’m sure there will be many more SEF announcements to come in the the next few months, […]
Q+A-What’s at stake for swap-execution facilities? (Reuters)
The SEF debate is certainly heating up. These questions and more will all be discussed at the WMBAA’s “SEFCON 1” event in DC on October 4th (details to follow). My comments in the Reuters piece: “The law calls it “a trading system or platform in which multiple participants have the ability to execute or trade […]
US CFTC Gets Suggested Guidelines For Swap-Execution Facilities (Wall Street Journal)
The Wholesale Market Brokers Association of American (WMBA) submitted to the CFTC guidelines as they saw them for what are to become Swap Execution Facilities (SEF). The full submission can be read here. Although this provides some clarity as to what the industry wants, this is only one voice and only the beginning. The Dodd-Frank […]
Smaller Dealers Ponder Implications Of Goldman Clearing Move (Wall Street Journal)
Goldman formally announced yesterday its new OTC derivatives clearing unit – Derivatives Clearing Services. This is no real surprise as clearly the major dealers are getting ready to help their clients navigate the new, more complicated world. Further, I’m sure we’ll see similar announcements in the coming week from Goldman’s competitors. This article looks into whether GS […]
SEF 101: Deconstructing the Swap Execution Facility
Also posted at TabbFORUM.com and submitted to the CFTC. The term “Swap Execution Facility” (SEF) has been formally christened and will henceforth be a part of OTC derivatives vernacular. Yet to be determined, however, is whether SEF will become merely a new label for existing businesses or conversely an open door for competition, innovation and […]