Tag: non-cleared derivatives

non-cleared derivatives

Research Paper Takes Aim at “Unrealistic” Non-Cleared Margin Requirements

The International Swaps and Derivatives Association (ISDA) has published a new academic paper that analyses the regulatory initial margin framework for the non-cleared derivatives market and argues that the 10-day liquidity horizon applied under the framework is “not realistic”.
The paper, written by Rama Cont, chair of mathematical finance at Imperial College London, examines the rationale for the 10-day liquidity horizon applied under the initial margin rules for non-cleared trades, and assesses whether it is appropriate. The 10-day period is double the five days set for cleared trades.

First Trades Completed on LCH SwapAgent

LCH SwapAgent, a service for the non-cleared derivatives market, says that it has processed its first trades.
Citi and Deutsche Bank were the counterparties to the Swiss franc-denominated interest rate swap and euro-denominated inflation swap. The trades were processed through MarkitServ.
LCH SwapAgent is available for market participants trading non-cleared OTC interest rate derivatives. LCH says acting as an independent calculation agent, it calculates and enables customers to exchange bilateral margin and settlement payments, without the need for a central counterparty.

MAS Postpones Non-Cleared Margin Rule

The Monetary Authority of Singapore (MAS) has postponed the implementation of rules surrounding margin requirements for non-centrally cleared derivatives. The rules were due to be invoked on September 1, however in a letter to market participants, MAS says it has been in close consultations with the industry in Singapore and regional regulators on a coordinated […]