Risk Management Systems Insights

Counterparties that will now come under the new uncleared margin rules threshold have misjudged the level of work and technology build necessary to be able to fulfil requirements set out by the International Swaps and Derivatives Association (Isda)’s SIMM methodology, market participants agree. “One thing we are seeing in terms of... read more

Issues with algo wheels remain in both the equities and futures space, despite growing popularity of the software, according to market participants on a panel discussion at the FIA’s IDX in London this week. “It is a complex problem,” said Sanji Shivalingam, global head of algorithms and analytics at UBS.  “What we... read more

The European Securities and Markets Authority (Esma)’s position limits for commodity derivatives could be set to focus purely on benchmark products, according to Laurence Walton, head of regulation and compliance at ICE Futures Europe. “The paper from Esma actually hints at something that goes beyond just tweaks. It hints at that... read more

The role of central banks in the supervision of central counterparties (CCPs) was greatly debated on a panel discussion at the FIA’s IDX in London this week. “It is a great test for a domestic marketplace, or a domestic clearing house when you can ask the question, when is a market regulator alone overseeing a CCP not enough?”... read more

A decision on the tiering between systemically important and non-systemically important third country central counterparties (CCPs) is unlikely to come to a conclusion before the end of this year, said Patrice Aguesse, head of the market regulation division at France’s national conduct authority the Autorité des Marchés... read more

MEP and vice chairperson of the economic and monetary affairs committee at the European Parliament Kay Swinburne urged caution to derivative operators who wish to increase volume because EU policy makers believe rules to move over-the-counter derivatives to the clearing space has failed due to derivatives having grown disproportionately to their... read more

The cost of regulatory compliance for international banks has become too burdensome and has started to impact the market, according to Anthony Fenwick, Citi’s head of AML advisory compliance. “We’re delighted to have all the digital technology that has come out, and this idea of driving down the cost of compliance,” he... read more

Significant technology adoption is required to distinguish between speculative and hedging trades under the Commodities Futures Trading Commission (CFTC)’s proposed new rulemaking for speculative position limits in commodities markets, a market participant, a lawyer, and a consultant agree. “The mapping and allocation of trades... read more

Technology products will predominately suffer if the trade war between the US and China starts to impact global supply and production chains, Olli Rehn, European Central Bank (ECB) governing council member and governor of the Bank of Finland told a conference in London this week. “The main effect, and the main concern today is - at least... read more