Central counterparty (CCP)
BoE economists build model to assess CCP backstop
Bank of England financial stability paper presents a ‘top-down’ statistical model for assessing the risk CCPs are exposed to, and the likely adequacy of their default resources
BoE official calls for greater transparency on CCP margin modelling
Central counterparties should compete on quality of risk management, rather than a race to the bottom on margins, says Bank of England's head of payments and infrastructure
RBA paper supports CCP interoperability
Researchers weigh the benefits of increased netting across linked central counterparties against the potential costs arising from the bilateral exposures each link creates
BIS publishes data disclosure standards for CCPs
CPSS and Iosco set requirements for which quantitative data central counterparties should release and when; aims to increase transparency around the risks associated with them
BoE's Tucker wants more robust CCP governance
Bank of England deputy governor Paul Tucker raises concerns over the size and for-profit nature of CCPs; says stress tests not possible until loss allocation work is finalised
‘Tiered' clearing networks increases CCP risk, study finds
Complex clearing networks ‘appear to increase' some risks faced by CCPs, according to working paper investigating the ‘topology' of such networks
RBA expects co-ordination over international clearing mandates
The Reserve Bank of Australia’s Jenny Hancock says move to mandate clearing of G-4 currencies still allows market participant flexibility; stresses importance of international co-ordination
EC recognises member state fears that FTT will hurt clearing
Tax liability could send CCPs "directly into insolvency" warn Czech officials in leaked document
RBI ‘reluctant’ to apply for Esma recognition under current rules
Indian reticence over Emir steps up pressure on EC equivalency regime
Japan delays cross-border rules amid US and European uncertainty
Equivalence and substituted compliance issues must be resolved quickly, or financial markets will be affected, says Kono at Japan FSA
The changing structure of the euro money market
Systematic reports on the European secured and unsecured money market would represent a powerful tool for central bankers despite the current distortions caused by Eurosystem liquidity operations
Australian regulators unveil criteria for mandatory clearing
Three regulators, including the RBA, reveal how they will decide whether and when to implement mandatory clearing requirements for OTC derivatives
BoE paper backs CCP discretion over optimal resource allocation
Researchers conclude that central counterparties should be given some leeway to set their own provisions against loss
CCP ‘armageddon’ could lead to sovereign default, warns HSBC executive
Single bank default could affect multiple CCPs, leading to crippling default contribution for existing members and a chain of bank failures
CPSS and Iosco start assessing compliance with FMI principles
Organisations begin process of monitoring ‘full, timely and consistent’ implementation of Principles for Financial Market Infrastructures across jurisdictions
Central banks weigh use of OTC clearing houses
Survey finds nearly 40% of central banks are considering clearing their OTC derivatives
MAS warns on fragmented clearing and reporting
Asian financial markets have made progress in setting up CCPs and trade repositories, but greater harmonisation is needed across borders, Singaporean central bank warns
ECB’s Cœuré examines trend towards secured transactions
Benoît Cœuré highlights increasing proportion of secured money market transactions and greater use of central counterparties in Europe, but warns this can cause problems
IMF paper urges greater macroprudential standards for CCP risk buffers
Study published by IMF seeks to eliminate regulatory arbitrage between banks and CCPs' prudential standards
OCC denies swaps push-out protection to non-US banks
Foreign banks have until July to push out derivatives activities after OCC guidance repeats Dodd-Frank drafting mistake
Fed’s Yellen sizes up challenges in derivatives reforms
Federal Reserve vice-chair says initial margin requirements for bilateral derivatives trades are necessary but could place a heavy burden on the industry
BoE to get new FMI supervision department
Bank of England will gain new powers of oversight over financial market infrastructures after transition from Financial Services Authority in April next year
Canadian research finds net liquidity boost from central clearing
Bank of Canada working paper finds small liquidity increase from use of centrally cleared derivatives
RBA revamps clearing and settlement to meet FMI standards
Reserve Bank of Australia releases final rules for clearing and settlement to bring them up to date with new FMI standards