Below is a list of the top stories we had in 2014 including expert Q&As, independent trend analysis and other commentary articles from your peers in the industry. You might also find our 2014 recap article covering regulatory reform useful if you need a reminder of the main milestones of the last year.
Execution & Trading – SEFs & OTFs
MiFID II: Where the Uncertainty Lies with OTFs
Elements of MiFID II, and specifically execution of OTC derivatives via OTFs, remain ambiguous. Lynn Strongin Dodds explores the areas of uncertainty including the status of FX swaps, the definition of sufficient liquidity and how the derivatives market is preparing accordingly.
http://development.derivsource.com/articles/mifid-ii-where-uncertainty-lies-otfs
Collateral Management
Best Practices for Margin Analytics, Liquidity Risk Analysis & Collateral Valuations
Interactive Data’s Anthony Belcher explores the emerging best practices among margin analytics, liquidity risk analysis and collateral valuation as needed to support new demands on collateral management processes for both exchange-traded and over-the-counter (OTC) derivatives.
TBA Margining & MBS Best Practices
The move to daily margining for the US Mortgage-backed trading market requires heavy investment in resources and technology. Alpha Financial Software’s Joseph Kohanikexplains the emerging best practices, such as the use of trade assignments, for firms needing to improve their management of margining in this newly evolving MBS market.
http://development.derivsource.com/content/tba-margining-mbs-best-practices
Is Cross Margining all it’s Hyped Up to Be?
There are various capital efficiency solutions available now to support the increasingly stringent collateral quality and quantity required to meet margin requirements for cleared and uncleared OTC derivatives. Daniela Schroeder of Commerzbank explains how cross margining works and explores if it is really the panacea to margin efficiency it is hyped up to be.
http://development.derivsource.com/articles/cross-margining-all-its-hyped-be
Why Managing Non-Cleared Derivatives Margin Should top your To-Do Lists
SunGard’s Ted Allen explains why market participants should start preparing their collateral management programs to support BCBS/IOSCO’s non-cleared margin requirements now and offers advice for how firms should start their compliance plans
Balancing Cost & Revenue: the Collateral Conundrum for the Sell Side
Sell-side firms face huge obstacles to bring collateral management processes up to par to meet new regulatory and client requirements, but there are revenue opportunities for those who focus on flexibility and strategy. David Little, director of Strategy and Business Development at Calypso Technology explains in an interview with DerivSource.
http://development.derivsource.com/articles/balancing-cost-revenue-collateral-conundrum-sell-side
Clearing
The Price of Clearing
Actualize Consulting’s Eunice Bet-Mansour shares the results of her analysis of the economics of derivatives prices in a centrally cleared / SEF executed environment versus a non-cleared trading regime. Read on to learn more about the comparative methodology and findings.
http://development.derivsource.com/content/price-clearing-0
Managing Data from OTC Derivatives Clearing Reports: Why Fragmentation is a Risk & How to Address it?
As more derivatives are centrally cleared CCPs are rapidly becoming key distributors of trade and position information but the variety of the reports, formats used and data distributed is complicating the management of these inbound clearing reports for market participants. DerivSource speaks to Message Automation’s Hugh Daly about how firms can take control of this fragmented post-trade process to streamline CCP reporting and improve management of derivatives trade data.
Regulation & Legal
5 Elements of the ESMA Q&A Needing Action or Clarification for EMIR Trade Reporting
The industry welcomes input from The European Securities and Markets Authority (ESMA) but there are areas of the recently published ESMA Q&A that still need implementation and clarification. David Broadway, policy adviser at the Investment Management Association (IMA) shares his views on the top five elements of the Q&A that are complicating necessary progress on the EMIR trade reporting front.
8 Quick Clarifications on the ISDA 2014 Credit Derivatives Definitions Protocol
ISDA launched the 2014 Credit Derivatives Definitions Protocol in August and derivatives market participants have until Sept 12th to implement these ‘new definitions’. Kristin Boggiano of Schulte Roth & Zabel shares some last minute clarifications firms, especially, buy-side participants, may find useful in the run up to the deadline.
Repo Comes Under the Microscope
DRS’ Michael Beaton explains transparency and reporting requirement the EU Commission recently proposed for securities financial transactions.
http://development.derivsource.com/content/repo-comes-under-microscope
FTT: What has been the cost to the Financial Markets in Europe so far?
A look at how the impact the Financial Transaction Tax (FTT) has had so far on trading volumes and activities and the concerns for long term impact for the financial markets and its stability in the EU. Lynn Strongin Dodds reports.
http://development.derivsource.com/articles/ftt-what-has-been-cost-financial-markets-europe-so-far-0
From around the globe
Singapore: A Balancing Act of Local vs. Global
City-state is moving towards compliance with G20 mandate but overseas rules impact the local markets. Dan Barnes explores.
http://development.derivsource.com/articles/singapore-balancing-act-local-vs-global-0
Danish Equity Market Growth Creates Opportunities for Derivatives
The strong growth in the Nordic equities markets, and Danish market in particular, is creating ample opportunities for derivatives market participants who can take advantage of the strong start to the IPO season in these markets. DerivSource’s Julia Schieffer quizzedLauri Rosendahl, SVP, European Equities and Equity Derivatives, Global Trading and Market Services at Nasdaq OMX Group for a quick view.
Malaysia Derivatives Market: Growth Now & Vision 2020
DerivSource spoke to Azila A. Aziz, CEO and Head of Listed Derivatives for Kenanga Deutsche Futures and President of the Malaysia Futures Brokers’ Association to learn how the Malaysian derivatives industry is evolving now and in line with Vision 2020.
http://development.derivsource.com/articles/malaysia-derivatives-market-growth-now-vision-2020
Germany Spotlight: KVGs Preparing for CCP Clearing under EMIR
In a DerivSource podcast, I spoke to two experts about KVGs and the challenges these organisations face as they prepare for central clearing under EMIR. The conversation covered both legal and structural challenges that KVGs face and offers additional analysis on the process of selecting a clearing broker and matching asset segregation offerings with their obligation for these German organisations.
http://development.derivsource.com/articles/germany-spotlight-kvgs-preparing-ccp-clearing-under-emir
New markets
Bitcoin Derivatives: Challenges & Opportunities
The bitcoin derivatives market is slowly developing. Lynn Strongin Dodds explores the challenges and opportunities institutional investors may encounter as this space evolves
http://development.derivsource.com/articles/bitcoin-derivatives-challenges-opportunities
* Don’t forget our podcasts and on demand webinars . Have something you want us to cover in 2015? Please get in touch at editor@derivsource.com
