Articles tagged by clearing
After a number of years having to take reactionary measures in
response to new regulatory requirements, panellists at Profit & Loss’ Forex Network New York conference expressed
enthusiasm for a new wave of innovation that has the potential to re-shape FX
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has received regulatory approval to clear cross currency swaps.
Following the approval, granted by the Securities and Futures Commission, OTC Clear says that ...
The US Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) has issued guidance to clearinghouses to further the development of recovery plans and wind-down Plans.
The CFTC says that for clearinghouses, or Derivatives Clearing Organisations (DCOs), ...
Franck Mikulecz, managing director of the newly established clearing house FXCH, explains why
and how his firm is using distributed ledger technology to clear spot FX
Profit & Loss: You’ve launched a clearing house to clear spot FX using ...
Sofiane Saidi is set to leave LCH Clearnet, where he currently works in NDF and FX options product development, according to market sources.
Profit & Loss understands that although no official date has been set for Saidi’s departure from the ...
OTC Clearing Hong Kong (OTC Clear) has launched a clearing service for cross-currency swaps (CCS), which will initially focus on swaps in the USD/CNH currency pair.
OTC Clear is the first international clearing house to provide clearing for USD/...
LCH has added Hong Kong to the centres in which it can offer clearing services.
Graham Wright has joined the LCH Limited board as an independent non-executive director. Wright is currently the chief information security officer and global head of digital risk for National Grid.
Prior to this, he has held a number of senior roles relating to cyber security and intelligence for the UK’s Ministry of Defence and in the private sector. These positions follow a career as an operational pilot and senior officer in the Royal Air Force.
Lex Hoogduin, group chairman of LCH, comments: “I am delighted to welcome Graham as an independent non-executive director to the LCH Limited board. He brings exceptional knowledge of the technology and operations space and the Board will benefit greatly from his experience in this area.”
Tradebook FX (TBFX), Bloomberg’s FX ECN, has reached an agreement with Citi for the bank to serve as a central clearing counterparty (CCP) on the platform.
“We feel that the combination of Citi’s expertise in FX, and FXPB in particular, and market leading role in foreign exchange globally, coupled with the wide network of Bloomberg clients will be very synergistic,” says Tom Murphy, head of FX, futures and equity options sales at Bloomberg Tradebook. Citi will be the second CCP on TBFX
LCH has announced today that Commonwealth Bank of Australia (CBA) has become its first Australian Protected Payments System (PPS) bank.
Having an Australian PPS bank enables LCH to make and receive Australian dollar payments in the local time zone.
The PPS system is the method by which LCH calls and pays cash margin to its clearing members. As part of the membership criteria for LCH, members are required to maintain a PPS bank account. Overseen by the Bank of England, PPS has been in operation in London for over 20 years, and also operates in New York.
Deutsche Bank has named Sandra Francisco as its new head of platform sales, North America – listed derivatives and markets clearing, based in New York.
Francisco took up the new role on October 7, and is responsible for developing account plans for North American clients transacting in global listed derivatives and markets clearing products.
Francisco will also be expected to develop appropriate coverage models and grow profitable market share on a global basis for One Debt, One Equity and One Markets clients in global listed derivatives and markets clearing products.
Data from the Bank for International Settlements show financial reform has not led to a greater proportion of derivatives trading on exchanges. Colin Lambert finds out why.
As the world’s regulators, led by a very aggressive Gary Gensler-led Commodity Futures Trading Commission (CFTC), sought to reform financial markets post-global financial crisis, the outcome seemed at the time to be the inevitable growth of trading on exchanges. “The world is moving to Chicago” was used as an analogy to express this sentiment – that city being closely associated with the exchange model of course.
Carlo Koelzer, CEO of 360T Group and global head of FX at Deutsche Börse Group, talks to Galen Stops about the importance of building critical mass amidst the changing landscape of the FX market.
Galen Stops: It’s now about one year on from Deutsche Börse’s acquisition of 360T. Can you shed some light about why you agreed to the deal?
Carlo Koelzer: Prior to this deal we were a big trading platform in the market, but a small organisation in comparison to our competitors. When you look at the larger platforms in the market they’re backed by firms like Icap, Thomson Reuters, Bloomberg and State Street, all of whom had larger balance sheets than us.
The Bank for International Settlements (BIS) has released its latest semi-annual survey of OTC derivative markets which highlights the growing impact of central clearing on interest rate derivative markets.
The publication presents the combined results of two complementary BIS surveys on positions in OTC derivatives markets: the semi-annual survey of derivatives dealers in 13 jurisdictions, and the Triennial Central Bank Survey of dealers in an additional 33 jurisdictions. The surveys took place at end-June 2016. A companion survey on turnover in foreign exchange and OTC interest rate derivatives markets took place in April 2016, and the results were published in September.
The European Securities and Markets Authority (ESMA) has asked the European Commission to delay the extension of mandated clearing to smaller counterparties.
Due to a range of reasons, but in particular the fact that the relevant EU legislations are under review or still being finalised, ESMA says it proposes to postpone the phase-in period for central clearing of OTC derivatives applicable to financial counterparties with a limited volume of derivatives activity.
ESMA’s report proposes to amend EMIR’s Delegated Regulations on the clearing obligation in order to prolong, by two years, the phase-in for financial counterparties with a limited volume of derivatives activity – those ones classified in Category Three under EMIR Delegated Regulations.
As 2016 comes to a close the regulatory agenda shows no signs of slowing. While the FX market itself has largely not been directly addressed by new regulations, it has been swept up in many of the broader OTC market reforms.
March 1 will mark the implementation of the variation margin requirements for non-cleared derivatives, meaning that thousands of counterparties – including asset managers, pension funds, insurance companies and hedge funds – will need to change their existing collateral support agreements, or set up new ones, before this date.
Carlo Koelzer CEO of 360T and global head of FX at Deutsche Börse Group, talks to Galen Stops, deputy editor at Profit & Loss, about his plans for building a central limit order book and why central clearing is now a viable method for alleviating credit risk in FX.
Following its acquisition by Deutsche Börse Group last year, 360T informed its clients that it planned to add a central limit order book (CLOB) and futures trading functionality to its platform.
Franck Mikulecz, managing director of FXCH, talks to Galen Stops, deputy editor of Profit & Loss, about how blockchain technology can help mitigate some of the credit challenges facing the FX industry.
With blockchain, or distributed ledger technology, still being so new to financial services, Mikulecz claims that banks are still trying to figure out the most effective way to deploy this technology.
“I can see a lot of banks have an interest because they know that the market will evolve and the market will potentially be disrupted by the technology but they don’t really know how it’s going to happen and they don’t really know how to use it themselves.