Y2014 -Year ZERO
D day-February 12, 2014
- a new reporting for OTC derivatives takes an radical effect in Europe
- panic of present unprepared OTC derivatives market participants
- The lack of understanding what is going to happen
- The lack of clarity about exactelly what is required
Expect the Unexpected
- new kind of communication between buy side and brokers
- shift away from off exchange trading
- shift towards standardised derivates trading and clearing
- radical changes of rules and regs
- changes of derivatives trading reporting
- SIBOS –new trends
CCP (centralcounterparty) services
- LCH Clear net Group, CME Europe, ICE Europe, EurexCleraring
- IOSCO 2013 principles for Financial Market Infrastructure
- more than 40 different regulators
- 2014 year of EMIR and Dodd-Frank reforms
- CFTC
- ESMA
- 2014 most of firms will not be ready to comply
- will miss February12 deadlines
- Year of highcosts
- Huge drain of skilled manpower
- Huge drain of resources
- More than dozen of new unique identifiers must be written
Basel III and Counterparty Risk Management
- London with USD 4 trillionFX daily global transaction in October2013
- CVA –Credit Valuation Adjustment
- OIS Overnight Index Swap
- HedgingCDS
- Asset classes as rates, FX, equity, commodities, credit
The oldhierarchies are broken
- new form of risks
- new form of components
- new order types
- Chicago based Hedge Fund Research
- Dissorder may not be under control
- Different matching during margin calls
- Significantly increased costs for transparently new bilateraly traded contracts
Unclear regulation
- FOA Futures and Option Association,
- Working groups of EACH
- new back offices tools
- We are still heading for another crisis
- We have move to a world that has less trading in it
A new Chaos world modelling
- Identifying critical trends and potential discontinuities
- mega trends are tectonic shifts
- Urgency and opportunity for new networks and coalition partners
- Emerging markets regulators