Tag: Reform

Presenting to the CFTC on Swaps Liquidity Fragmentation (and Aggregation)

On Tuesday, December 13th I presented to the CFTC Technology Advisory Committee. Chairman Gensler and Commissioners O’Malia and Wetjan were all there. Each panelist, myself included, gave a 15 minute opening and then we participated in an open Q&A with the Chairman, Commissioners and the members of the TAC. Maybe I’m just optimistic, but it […]

My Conversation with Dan Maguire, Head of Swapclear US (Video)

MF Global and the Euro crisis have made people think about counterparty risk again.  Counterparty risk concerns are good for clearing, and Swapclear US is all over it.  Here are I talk to its US head Dan Maguire about their enhanced functionality, success to date and the “fun” Dan had living through Lehman.

ICE, DTCC to vie for swap data repository supremacy (SNL Financial)

I’m not surprised that multiple firms are competing to be the swap data repository of choice.  This is America after all, so if an opportunity exists (especially one created by government mandate) than several firms will go after it.  However, I’m not sure I get the business model for running an SDR.  Having control over […]

Funds battle banks over $300 trillion derivatives market (Reuters)

Certainty of clearing is turning into one of the hottest derivative reform debates.  The crux of the issue is how can swaps traders be sure that when they execute on a SEF the trade will be accepted for clearing.  In most other exchange-like markets the vertical integration makes this a moot point.  If you trade […]

Trading reform still 'years from completion' (Financial Times)

Despite frequent new promises from Washington that rules will be done by a certain date (“Q4 2011 – oh wait, we meant Q1 2012!”) and major market participants stating their readiness it seams like the OTC derivatives reform process will never end.  Who’s fault is it?  Everyone’s really.  Politicians are trying to get reelected (or reappointed) […]

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 […]