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Published: 2023-09-28
Total Pages: 0
ISBN-13: 9780192868725
DOWNLOAD EBOOKClearing OTC Derivatives in Europe is a comprehensive and practical guide to the legal, regulatory and operational aspects of the OTC derivatives clearing industry in Europe.
Author: Bas J. A. Zebregs
Publisher:
Published: 2023
Total Pages: 0
ISBN-13: 9780191964732
DOWNLOAD EBOOK'Clearing OTC Derivatives in Europe' is a comprehensive and practical guide to the legal, regulatory and operational aspects of the OTC derivatives clearing industry in Europe.
Author: David Murphy
Publisher: Palgrave Macmillan
Published: 2013-09-04
Total Pages: 304
ISBN-13: 9781137293855
DOWNLOAD EBOOKThe OTC derivatives market has been hit by a massive wave of regulatory change. Capital and margin requirements have increased, trade reporting has been mandated, and execution mechanisms are evolving. Most of all, central clearing is being imposed for many transactions. OTC Derivatives: Bilateral Trading and Central Clearing explains the new rules and the new models. It discusses the traditional bilateral market, then sets out how this will change due to mandatory central clearing and the new ways in which OTC derivatives will have to be traded, reported, and processed. The risks of OTC derivatives clearing houses are discussed in detail, as are the protections that CCPs have against these risks. The book also looks at alternatives to some of the policy decisions that have been made, showing the balance between costs and benefits of various different approaches to derivatives market stability. The book is both a detailed primer on OTC derivatives clearing and a powerful insight into post-crisis financial regulation. Key features of the book include: • A discussion of the capital rules for OTC derivatives counterparty credit risk in Basel III; • An account of OTC derivatives trade processing in both bilateral and cleared markets; • A detailed account of the risk profile of OTC derivatives CCPs; • An explanation of the risks run in various collateral segregation models; and • A comparison of various macro-prudential tools for enhancing the financial stability of OTC derivatives markets.
Author: Joanne P. Braithwaite
Publisher:
Published: 2020
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKThis paper focuses on the EU regime for client clearing, including recent amendments to this regime introduced by 2019 regulatory reforms. It begins by providing the legal and regulatory context to clearing using central counterparties and the authorities' interest in promoting it in the post-crisis regulatory reforms. It then explains the significance of client clearing for those many entities unable or unwilling to become a member of a central counterparty. Focusing on the EU regulatory regime, and informed by recent empirical work undertaken for the Financial Stability Board, the paper proceeds by exploring the use of client clearing in practice and, in particular, engages with the complexities of these arrangements and the difficulty in accessing clearing reported by some entities. Informed by those fundamental aspects of the clearing regime, the paper then evaluates recent measures intended to promote client clearing which were introduced in 2019 in the course of the so-called 'EMIR Refit'. It looks in detail at the so-called 'FRANDT' requirement, namely that financial intermediaries providing access to clearing services do so on 'fair, reasonable, non-discriminatory and transparent commercial terms'. By way of contribution to the ongoing policy debates, the paper exposes the difficulty in meeting the desired policy objectives using current means, but also suggests ways in which this area of financial markets regulation may be revised.
Author: Mr.Manmohan Singh
Publisher: International Monetary Fund
Published: 2010-04-01
Total Pages: 17
ISBN-13: 1451982763
DOWNLOAD EBOOKTo mitigate systemic risk, some regulators have advocated the greater use of centralized counterparties (CCPs) to clear Over-The-Counter (OTC) derivatives trades. Regulators should be cognizant that large banks active in the OTC derivatives market do not hold collateral against all the positions in their trading book and the paper proves an estimate of this under-collateralization. Whatever collateral is held by banks is allowed to be rehypothecated (or re-used) to others. Since CCPs would require all positions to have collateral against them, off-loading a significant portion of OTC derivatives transactions to central counterparties (CCPs) would require large increases in posted collateral, possibly requiring large banks to raise more capital. These costs suggest that most large banks will be reluctant to offload their positions to CCPs, and the paper proposes an appropriate capital levy on remaining positions to encourage the transition.
Author: Volker Brühl
Publisher:
Published: 2018
Total Pages:
ISBN-13:
DOWNLOAD EBOOKAuthor: Hau Harald
Publisher: International Monetary Fund
Published: 2019-05-07
Total Pages: 45
ISBN-13: 1498303773
DOWNLOAD EBOOKNew regulatory data reveal extensive price discrimination against non-financial clients in the FX derivatives market. The client at the 90th percentile pays an effective spread of 0.5%, while the bottom quarter incur transaction costs of less than 0.02%. Consistent with models of search frictions in over-the-counter markets, dealers charge higher spreads to less sophisticated clients. However, price discrimination is eliminated when clients trade through multi-dealer request-for-quote platforms. We also document that dealers extract rents from captive clients and market opacity, but only for contracts negotiated bilaterally with unsophisticated clients.
Author: Niamh Moloney
Publisher: OUP Oxford
Published: 2015-08-27
Total Pages: 817
ISBN-13: 0191510866
DOWNLOAD EBOOKThe financial system and its regulation have undergone exponential growth and dramatic reform over the last thirty years. This period has witnessed major developments in the nature and intensity of financial markets, as well as repeated cycles of regulatory reform and development, often linked to crisis conditions. The recent financial crisis has led to unparalleled interest in financial regulation from policymakers, economists, legal practitioners, and the academic community, and has prompted large-scale regulatory reform. The Oxford Handbook of Financial Regulation is the first comprehensive, authoritative, and state of the art account of the nature of financial regulation. Written by an international team of leading scholars in the field, it takes a contextual and comparative approach to examine scholarly, policy, and regulatory developments in the past three decades. The first three parts of the Handbook address the underpinning horizontal themes which arise in financial regulation: financial systems and regulation; the organization of financial system regulation, including regional examples from the EU and the US; and the delivery of outcomes and regulatory techniques. The final three Parts address the perennial objectives of financial regulation, widely regarded as the anchors of financial regulation internationally: financial stability, market efficiency, integrity, and transparency; and consumer protection. The Oxford Handbook of Financial Regulation is an invaluable resource for scholars and students of financial regulation, economists, policy-makers and regulators.
Author: Olga Lewandowska
Publisher: BoD – Books on Demand
Published: 2020-04-30
Total Pages: 222
ISBN-13: 3838214447
DOWNLOAD EBOOKThe financial crisis of 2007–2009 exposed the weaknesses of the global over-the-counter (OTC) derivatives market such as limited transparency regarding risk exposures, poor counterparty risk management practices, and the risk of contagion arising from interconnectedness in this market. In the aftermath of the financial crisis, regulators introduced worldwide legislative and regulatory changes aimed at increasing the transparency and stability of the financial markets. In this book, Dr. Olga Lewandowska explores those novel regulatory solutions and their impact. The main focus is on central counterparty (CCP) clearing that became mandatory for OTC derivatives under the new regulatory paradigm. In four research papers, she analyzes CCP from different risk perspectives and based on four diverse research methods. Her book offers a comprehensive assessment of the risk-reduction potential of the CCPs, their implications for the financial markets, and the practical challenges in the implementation of the recent financial market reforms.
Author:
Publisher:
Published: 2014
Total Pages: 79
ISBN-13:
DOWNLOAD EBOOKRegulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC Derivatives, CCPs and Trade Repositories (EMIR) requires ESMA to develop draft regulatory (RTS) in relation to the clearing obligation. In this context ESMA consulted stakeholders on two occasions: a discussion paper was published on 12 July 2013 and a consultation paper including a first version of the draft RTS was published on 11 July 2014. This consultation paper proposed a clearing obligation for certain interest rate classes of OTC derivatives. This report includes the final version of the draft Regulatory Technical Standards (RTS) that are submitted to the European Commission for endorsement."--Executive summary.
