Day: 5 December 2017

Thomson Reuters Enhances Model Risk Platform

Thomson Reuters has expanded its Connected Risk platform to include a Model Risk Management (MRM) solution, allowing institutions to demonstrate a real-time understanding of their model risk landscape, with the ability to report on the model’s governance status, sign-offs and related issues from a single platform source.
The firm says that financial modelling plays a critical role in several financial institution activities, including credit underwriting, risk management, capital adequacy and instrument valuation.
It adds that its MRM solution is designed to provide risk professionals with a holistic understanding of how each of these models in the business is derived, validated and applied.

LCH Shows Initial Traction in G10 NDF Clearing

LCH says it has cleared a total of $745 million of G10 FX NDF currency pairs less than one month after the products went live on its ForexClear service.

 The new NDF currency pairs reflect the five most actively traded G10 currencies: Australian dollar, euro, Japanese yen, pound sterling and Swiss franc, against the US dollar. LCH says that expanding ForexClear’s coverage to incorporate these pairs increases opportunities for capital optimisation by increasing the number of products eligible for clearing at LCH.

Are SEFs Back on the Menu?

Micah Green, a partner at Steptoe and Johnson, addresses the future of Swap Execution Facilities (SEFs) now that Christopher Giancarlo is the chairman of the US Commodity Futures Trading Commission.

Green points out that Giancarlo was working in the financial services industry during the initial roll out of Dodd-Frank and the SEF rules that were implemented as a result of this legislation. 

“I think it became clear to him, and I think it’s reflected in his white paper on swap execution rules, that the SEF rules that were adopted in a relative rush post-Dodd-Frank missed the mark from his perspective as to what the statute required,” says Green, who adds that CFTC staff are beginning to draft now swap execution rules as a result.