Capital Markets Advisors

MONDAY, JULY 21, 2014 by GEORGE BOLLENBACHER   With all the discussions about: 1) the coming (sometime) global increase in interest rates and 2) the need to margin outstanding swaps positions, not much has been said yet about what happens when these two events intersect. So it’s time to take a close look at the storm that will occur when these two clouds on the horizon come together. First let’s… Read More »

Author: George M. Bollenbacher Associate Partner, Capital Markets Advisors This July marks the fourth anniversary of the passage and signing of the Dodd-Frank Act, so it is appropriate to reflect on the two sections of the DFA most of interest to Tabb Forum members, Title VII on derivatives, and Section 619, the Volcker Rule. Title VII The first question we might ask about Title VII is whether swaps were really… Read More »

By Helen Bartholomew Published July 12, 2014 IFR After a solid first quarter, equity derivatives desks have endured a difficult three months as volumes declined alongside a plunge in volatility, further denting hopes that the business will play a significant role in plugging the revenue gap left by the fixed income slump. As banks prepare to deliver second-quarter results that will struggle to live up to solid first-quarter numbers buoyed by… Read More »

Author: Isobel Wright, Nora Bullock Hogan Lovells explains how alternative investment funds that enter into derivatives transactions may judge the interaction between Emir and AIFMD The European Market Infrastructure Regulation (Emir) came into force on August 16, 2012, and sets out new requirements, including clearing obligations, risk mitigation techniques for uncleared trades and trade reporting, for all over-the-counter derivatives. The extent to which the new requirements will apply will depend… Read More »

CMA is a results-oriented professional boutique-consulting firm with a specialized focus in capital markets. Our resources are highly experienced, averaging over 10 years of experience in financial services working at the major financial institutions. CMA resources bring a broad set of tools and market knowledge to firms and situations that need to be addressed with confidence in execution as well as expeditious delivery.     Values and Mission   Clients… Read More »

By Abigail Moses Jun 23, 2014 12:06 PM ET The International Swaps & Derivatives Association said it was asked to rule whether a clause in credit-default swaps on Argentina has been triggered after the government said it won’t make bond interest payments. Schulte Roth & Zabel LLP, a U.S. law firm, requested the ruling for a “potential repudiation/moratorium event,” according to a letter dated June 20 on ISDA’s website. The… Read More »

Written by: William Mitting Mifid II plans could force thousands of foreign firms out of Europe Provisions within Mifid II to regulate direct electronic access could result in thousands of non-EU firms ceasing trading on European derivatives markets. The European regulator Esma is currently consulting on the technical standards that will form the basis of the implementation of the Markets in Financial Instruments Directive or Mifid II. Central to the… Read More »

06.19.2014 Swap dealers are facing new rules for calculating margin for uncleared swaps, i.e., those swaps that are executed and settled bilaterally rather than being centrally cleared. The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have established a December 2015 deadline for national regulators to come up with rules that conform to guidelines issued by BCBS/Iosco in September of last year for calculation of initial… Read More »

By Simon Johnson, Financial Times Financial shadows are dangerous. Even more dangerous are interactions between poorly understood shadows and essential financial intermediation activities. And most dangerous is when officials and private sector executives encourage a class of transactions that supposedly provide modest risk mitigation, while really building a disguised form of systemic risk on a grand scale. It was not mounting losses at Countrywide, the failure of Lehman Brothers or the… Read More »

A JWG analysis. MiFID I was all about creating a common set of rules for the single market.  Along the way, it asked regulators to track market abuse.  They duly set up a system of transaction reporting that all feeds into Paris – 70% of it via the UK.  Seven years and millions in fines for poor reporting practices later, the system sort of works for spotting bad behaviour. Then,… Read More »