Tag: OTC derivatives

OTC derivatives

FSB Names LEI Regulatory Body

The Financial Stability Board (FSB) has confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System as the International Governance Body (IGB) for the globally harmonised identifiers used to track OTC derivatives transactions. G20 Leaders agreed at the Pittsburgh Summit in 2009, as part of a package of reforms to strengthen the […]

Survey: Financial Industry Remains Unprepared for UMR

A new State Street survey finds that although the uncleared margin rules (UMR) represent a “monumental change” in the OTC derivatives industry, a large majority of the firms remain unprepared for the compliance as well as the operational challenges associated with the new workflows. The bank says 81% of institutions with a September 2021 (Phase […]

OTC Derivatives Data Highlights Impact of Regulation on Turnover

The latest semi-annual survey of OTC derivatives markets by the Bank for International Settlements (BIS) offers another insight into the impact of regulation on market activity. The survey finds that notional amounts of OTC derivatives activity at end-December 2019 was 2.7% higher year-on-year at $559 trillion, however seasonal factors meant that it was down from […]

FSB Issues Review of Mexico’s OTC Derivatives Reforms

The Financial Stability Board (FSB) today published its peer review of Mexico, which examined the implementation of the G20 commitments on over-the-counter (OTC) derivatives. Mexico’s OTC derivatives market is relatively small from a global perspective, but is the largest in Latin America. The market has a substantial cross-border component, with foreign banks being important players, the […]

FX Settlement Risk Has Increased; Exposures Down: BIS

FX settlement risk has increased since 2013 according to the Bank for International Settlements (BIS), both in relative and absolute terms, however the gross market value of outstanding FX and OTC derivatives has fallen, thanks largely to the growth in clearing. An article in the bank’s latest Quarterly Review says that in spite of “significant […]

NFA Appoints OTC Derivatives Head

The board of directors of the US National Futures Association (NFA) has approved the appointment of Michael Otten as vice president, OTC Derivatives. “We are thrilled to welcome Mike to this senior position overseeing NFA’s OTC derivatives department,” says NFA’s CEO and president Thomas Sexton. “With his significant regulatory experience and extensive background, Mike will […]

BIS: OTC Derivatives Volumes at Five Year High

The latest Bank for International Settlements’ (BIS) latest semi-annual release of OTC derivatives statistics shows that notional volumes rose to $640 trillion at the end of June 2019, the highest level since 2014 and up from $544 trillion at the end of 2018. The BIS says part of the increase reflects a seasonal pattern evident […]

DSB Survey Finds Demand for Analytics Functionality

The Derivatives Service Bureau (DSB), founded by the Association of National Numbering Agencies (ANNA) to facilitate the allocation and maintenance of International Securities Identification Numbers (ISINs), Classification of Financial Instrument codes (CFIs) and Financial Instrument Short Names (FISNs), for OTC derivatives, has announced the results of its second 2019 industry consultation. The survey reveals “a […]

NEX Regulatory Reporting Launches Australian Solution

NEX Regulatory Reporting has launched a new solution for derivatives transaction and position reporting under the Australian Securities and Investments Commission’s (ASIC) OTC derivatives trade reporting requirements.The ASIC solution expands the firm’s global reporting coverage and provides Australian firms and international companies trading in Australia, with a full end-to-end transaction reporting solution to both licensed trade repositories.
ASIC introduced OTC derivatives trade reporting in 2013 to improve risk management and enhance transparency in the OTC derivatives market – it was phased-in between 2013-2015.

FCA Paper Claims to Throw New Light on Sterling Flash Crash

A new paper published by the UK’s Financial Conduct Authority (FCA) claims to throw new light on events surrounding the sterling flash crash of October 2016 by being the first paper to use trade reports to the FCA under EMIR to analyse how different market participants react in times of market stress and their impact on the liquidity dry-up in a flash crash.
The paper has, however, triggered some confusion amongst market participants thanks to ambiguous terminology, mainly the constant reference to “OTC derivatives”, without specifying exactly what products it is talking about.