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Kathleen Tyson-Quah - Granularity Ltd - London | 30/06/2012 | 2406 views

The ESMA OTC Derivatives End User Carve Out

ESMA has released a Consultation Paper on the draft technical standards for trade repositories, OTC clearing and CCPs. Discussion of non-financial counterparty exclusions begins on page 14. OTC contracts that protect non-financial counterparties against risks "directly related to their commercial activities and treasury financing activities" are ... Tags: Trade executionGroup: Post-Trade Forum

Kathleen Tyson-Quah - Granularity Ltd - London | 19/06/2012 | 1684 views

Hurtling Towards Harmonisation

I spent most of yesterday reading the Financial Stability Board's OTC Derivatives Markets Reforms Third Progress Report on Implementation. Thrilling stuff if you were desperately awaiting your next installment of regulatory waffle on harmonisation of global regulation and infrastructure for derivatives. What struck me most powerfully about this re... Tags: Trade executionGroup: Post-Trade Forum

Kathleen Tyson-Quah - Granularity Ltd - London | 16/05/2012 | 2290 views | 1 comment

Repo and OTC Derivatives as Financial Crisis Accelerators

Following links a few days ago led me to a fascinating journal article by Professor Mark Roe of Harvard Law School. He suggests that the preferential treatment of OTC derivatives and repo collateral transfers in advance of bankruptcy skews incentives to make the financial system much more leveraged and more risky than it would be otherwise. The t... Tags: Trade executionGroup: Post-Trade Forum

Kathleen Tyson-Quah - Granularity Ltd - London | 14/05/2012 | 2629 views

Initial Margin: Theory and Practice

The news that the CME CCP will be accepting corporate bonds and that LCH-Clearnet will accept RMBS for initial margin has me thinking about the dangers of demutualisation of clearing houses. Managements of shareholder owned clearing houses are keen to compete for market share and volume to increase revenues, bonuses and profits (not necessarily in... Tags: Trade executionGroup: Post-Trade Forum

Kathleen Tyson-Quah - Granularity Ltd - London | 13/05/2012 | 2116 views

Are CCPs Increasing Risks? Part IV - With Slides!

The Post Trade Forum debate on Are CCPs Increasing Risk? was held at the London Stock Exchange [a couple weeks ago]. Cheers, Gary, for letting me take part in such a fun event! My slides are available to download here: Are CCPs Increasing Risk? Short story is that I see rising risks from mandatory margin of OTC derivatives with CCP fragmentation,... Tags: Trade execution, Risk & regulationGroup: Post-Trade Forum