Tag: non-cleared derivatives

non-cleared derivatives

LCH SwapAgent Hits $1 Trillion Notional

LCH says that its SwapAgent service, which acts as an independent calculation agent, by calculating and enabling market participants to exchange bilateral margin and settlement payments without the need for a central counterparty, has now surpassed the $1 trillion mark in notional registered. The service, which was launched in 2017, says the total number of […]

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 […]