Author: Tony Scianna, executive vice president, SunGard I recently participated in a webinar with DerivSource that tackled the topic “Regulatory Readiness: The Data Management Challenge.” You can now hear the playback on the DerivSource website, and I thought I would provide a brief recap to highlight some of the key points I discussed with Anshuman [...]
Posts Tagged: counterparty risk
Author: Laurent Jacquemin, global head of post-trade services, SunGard Over the next two to three years meat is going to be put on the bones of both the US ‘Dodd/Frank’ legislation and the proposals of the European Commission. The precise shape of the regulation is still unclear but I thought it would be useful to [...]
Author: Dan Travers, product manager, SunGard There are two ways in which a bank’s counterparty credit risk management can be made more efficient through the use of CVA. First, the allocation of credit risk appetite and second, the management of that credit risk once taken Credit risk appetite has traditionally been allocated by a “top-down” [...]
Author: Dan Travers, product manager, SunGard Credit Valuation Adjustment (CVA) has become increasingly important in the derivatives trading world since the crisis as a way to price in the cost of counterparty risk. As such, there are an ever increasing number of banks adopting CVA as a core part of their process for managing counterparty [...]
I look forward to you joining us on Tuesday, May 25 for this timely discussion about critical industry issues and how SunGard’s Cliq fits into the mix.
In my perspective, this poll tackles an important question for those on either side of derivatives transactions: What is your biggest challenge in post-trade derivatives processing?
As regulators move closer to drafting specific rules around the derivatives market, it is important to remember one of the key drivers behind regulatory interest: risk. As the failure of Lehman Brothers has shown us, risk can take many forms. You can find examples of operational, counterparty, market, and asset class specific risk, among others.
With the events of the last 12 months, regulators have begun to scrutinize this market – in particular the credit default swaps market – in the hopes of increasing transparency and reducing counterparty risk. It’s not surprising that in the wake of this scrutiny, the central clearing counterparty (CCP) model has been suggested as a possible solution.
Whatever the details of the new regulations, it has become clear that the biggest impact will be around the need for real-time information, whether that relates to counterparty exposure, margins, risk reports, or other areas. It is no longer sufficient to wait until tomorrow or next week or even end of day to calculate your margins or determine your positions.