In a DerivSource webinar Sept 13th, a panel of industry experts discuss how access to CCPs is evolving to provide end users with a variety of direct access options amidst OTC derivatives market and political change.
The CCP clearing space for OTC derivatives has transformed significantly since the G20 mandated for clearing of some standardised OTC derivatives in 2009. Since then, the pool of clearing brokers offering clearing services has contracted instigating concerns over potential concentration risk and dramatically reduced capacity for non-clearing members who require access to CCPs to satisfy their own clearing needs. Additionally, political change in Europe with the impending “Brexit” of the UK from the EU is giving rise to a debate over what the role regional players (both brokers and clearinghouses) will play in role in central clearing in the future. As a result, some clearinghouses and market utilities established direct access models for non-clearing members to support the CCP clearing needs of non-clearing members.
In a DerivSource webinar, a panel of OTC derivatives market participants will explore how market changes, including extension of CCP clearing for repo and FX derivatives, Brexit and the reduction of clearing brokers offering services, are changing the way non-clearing members look to access CCP clearing. The panel will also evaluate the various direct access offerings available and assess the applicability to various market participants including asset managers, pension funds and corporates. Attendees will gain firsthand insight into how the CCP clearing space is evolving and what lies ahead for market participants of all types.
The panel will explore the following questions:
• FX and repo – how is CCP clearing for FX derivatives and repo evolving and why?
• Clearing brokers – how will the concentration risk as a result of fewer clearing service providers impact how end users access CCPs?
• Off-shore vs. Onshore – how will political change, including Brexit, change the locality of CCP clearing and what does this mean for both brokers and end users?
• Rise of the regional brokers – how can local clearing brokers support end users eager to access CCPs in light of fewer global brokers offering clearing services?
• Direct access models – what are the direct access models on offer today by various CCPs and market utilities? How do they work and what benefits do they provide?
• 2018 & beyond – what are the predictions for how CCP clearing for OTC derivatives will continue to evolve in the next 2 years?
• Jaki Walsh, Chief Product Officer, Sernova Financial
• Rosa Fenwick, LDI Portfolio Manager, BMO Global Asset Management
• Michael Boroughs, Fixed Income & Trading & Clearing Business Development – Client Solutions, Eurex/Eurex Clearing
Moderator: Julia Schieffer, Founder, DerivSource.com