Over the last few years, we’ve seen the evolution and ascendance of the “mash-up” in the world of entertainment. For those not readily acquainted with the term, a mash-up generally refers to the intentional blending of two formerly individual items – which hopefully produces an even better (or more entertaining) result than what previously existed. [...]
Posts Tagged: Derivatives
The world’s major stock exchanges are involved in another wave of mergers: Deutsche Boerse intends to pair up with NYSE Euronext, and the London Stock Exchange has announced that it is to combine with Canada’s TMX group. Meanwhile the takeover of ASX by Singapore’s SGX faces political opposition in Australia, but the two exchanges are [...]
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?
Yesterday I participated in one of the CME Group’s ExchangeTalk interviews on Twitter. I am betting that you follow @CMEGroup on Twitter already, since they have more than 750,000 followers; however, if you aren’t familiar with their ExchangeTalks, you can see a recap of mine below and find a list of the people they have interviewed thus far here. They do a great job of organizing Twitter conversations around industry professionals and themes. Keep your eyes out for future $ExchTalk interviews and come with your own questions for the interviewees.
If you have any additional questions for me or want to connect via Twitter, you can find me @tonyscianna.
It was a great event, with a lot of thoughtful questions from attendees as well as discussion around the future of the derivatives markets. If you couldn’t make it to the breakfast in New York, you can join us in London on January 14 or Chicago on February 25 for similar events.
…when it comes to reporting and risk in particular, increased focus on transparency will also mean increased focus on a real-time view of your data and achieving more efficient methods of communication. This theme is driving a lot of what my team is working on, and you will see more blog posts around these topics as the year goes on.
Today via Twitter, I conducted a live interview with TowerGroup Research Director Stephen Bruel about key issues in the derivatives space. In case you missed the “twitterview,” I’ve posted the Q&A for you here.
He believes this will involve providing transparency around assets, liabilities, collateral, liquidity, etc. (rather than position transparency) and says this information should already be available from existing enterprise risk management systems. Is it?
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.