Central clearing will be a permanent fixture in the fabric of the OTC derivatives industry but industry participants still have questions that remain unanswered.
This week, US regulators held another public roundtable to discuss and work towards defining the rules for the regulation of central clearing facilities for OTC derivatives as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Meanwhile, the CME announced the launch of clearing interest rate swaps Monday, which follows an announcement by LCH.Clearnet, Barclays and MPS’s that IRS trades have been centrally cleared including back-loaded trades.
In short, momentum towards central clearing of OTC derivatives, including credit default swaps and interest rate swaps, continues whilst the regulators on both sides of the Atlantic define the rules which will regulate and largely dictate how clearing will take place.
The waiting game may have a deadline but many market participants (both sell side and buy side) still have questions about how clearing will take place and affect internal trade processing operations and risk management tasks.
Due to requests from our members, DerivSource is tackling the topic of central clearing in a virtual roundtable Webinar post passage of the Dodd-Frank Act November 16th.
In this Webinar, we have top-notch industry experts on the panel to review how central clearing of derivatives will evolve in the new regulatory environment and how these changes will impact both buy-side and sell-side firms.
Below are some of the topics to be discussed by the panel:
- What instruments are likely to be mandated to be centrally cleared? How will exchange review what instruments should be centrally cleared?
- What are the other requirements set out by the new legislation, which affects central clearing of OTC derivatives and including: real-time and public reporting, rules around block trades?
- How will central clearing affect internal operations such as risk management and reporting?
- What are the main changes banks will have to make to clear directly?
- What are the main operational changes firms will have to make to use a DCM’s clearing service?
- What will a DCM client clearing service look like? How can DCMs’ make their client clearing services ‘future-proof’ and regulatory compliant?
- How are the CCPs such as ICE, LCH.Clearnet, CME and Eurex improving services in light new regulation (i.e. expanding to new derivative types such as interest-rate swaptions)
- How will clearinghouses differentiate themselves?
- How will major swap participants (MSP) and major swap dealers be defined?
- What are the scenarios where a cleared swaps won’t be required to trade via an exchange via SEF?
- The discussion will cover many other areas and audience members can submit questions to me directly before the event. There will also be a 15-minute Q&A session with the panel at the end of this event.
Speakers:
Sanela Hodzic, Calypso Technology (Event Sponsor)
James Wallin, AllianceBernstein
Steve Mahoney, Credit Suisse
Joe Sack, SIFMA/AMF
Sunil Cutinho, CME Group
To Register for this event please go to the Webinar event’s page. You are also advised to check your spam folder for emails sent from DerivSource including login details for the event.
