The current pace of regulatory change can seem overwhelming to many buy-side firms trading Derivatives. The move to central clearing of some OTC products has raised a number of new challenges around the collateral management process that buy-side firms must deal with. This paper considers the…
This special report explores lessons learned from the first EMIR reporting phase, which became effective on Feb. 12, and looks forward to the newest phase, exploring what the newly reported data will tell regulators about the bigger picture of the derivatives market in the European Union. We also…
Financial firms are currently experiencing significant regulatory and cost pressures. This is leading to a search for ways to optimize various aspects of trade types that involve some level of counterparty credit risk (derivatives, securities lending, repo). This paper looks at the different types…
In this paper, we will examine model validation as it is typically practiced today and then explore new approaches, including the benefits of testing with mathematical identities.
Implementation schedules have slipped anddetails are still being worked out, but there can be no doubt that the regulatory landscape for over-the-counter (OTC) derivatives is changing dramatically.
This article examines how a swap portfolio’s value differs under the single and multi-curve approaches at four different snapshots in time―including pre-crisis, at the height of the crisis, post-crisis and today.
This paper illustrates the challenges and complexities financial institutions face in hedging Credit Valuation Adjustment (CVA) and Debit Valuation Adjustment (DVA) in the present market and regulatory environment.
CFOs will have to re-evaluate their hedge accounting strategies to mitigate a new wave of exposure challenges caused by volatile energy and equity markets. This white paper reviews forthcoming changes to the current system of hedge accounting.
Litigation that has been generated from LIBOR manipulation has seen a large number of interest rate swap (IRS) mis-selling claimants amend their pleas. This white paper reviews such cases and their outcomes.
Under consideration in this white paper is the redress scheme announced by the FSA in relation to interest rate hedging products, including who can claim redress as a ‘non-sophisticated’ customer.