Category: Central Counterparty Clearing
Eurex-cellent?
Eurex Clearing has announced an extension of its client clearing documentation to facilitate on-boarding under EMIR. Market standard Annexes have been added to both the FOA Client Clearing Module[1] (the “Module”) and the ISDA/FOA Client Clearing Addendum (the “Addendum”), enabling a standardisation of client clearing documentation of OTC derivatives. The publication of the Eurex Clearing […]
LCH Authorised as EMIR CCP
On 22 May 2014, LCH.Clearnet SA was approved by the Banque de France as a CCP authorised to offer services in the EU pursuant to EMIR, bringing the total number of CCPs so authorised to six.
EMIR CCPs- Italy joins the party
20th May 2014- Cassa di Compensazione e Granzia S.p.A was approved by the Bank of Italy as a CCP under EMIR. CC&G, part of the London Stock Exchange group, joins Nasdaq OMX, EuroCCP-NL, KDPW_CCP and Eurex Clearing AG. The central bank also approved an interoperability agreement between CC&G and the French clearing house LCH. Clearnet […]
Cleared Derivatives Execution Agreement Makes Debut
The ISDA/FIA Europe Cleared Derivatives Execution Agreement was published on 15 May 2014. It facilitates principal-to-principal trading between an executing broker and its client of swaps that the parties have agreed are to be cleared by a CCP located outside of the US. The agreement describes the process for submitting a trade to a CCP […]
CTFC’s Wetjen: more money needed to monitor elephant in the room
Speaking before the Senate Appropriations Subcommittee on Financial Services and General Government, CFTC acting-Chairman Mark Wetjen used the rare tactic of honesty in his appeal for extra funding in 2015. “The unfortunate reality is that, at current funding levels, the Commission is unable to adequately fulfill the mission given to it by Congress.” The bulk […]
Frontloading on the Backburner?
On 8 May 2014, ESMA wrote a letter to the EU Commission, seeking its views on a possible solution to the thorny issue of frontloading. The frontloading requirement is triggered by the authorisation of a CCP under EMIR (of which there are now four). If ESMA concludes that any of the products offered by that […]
KDPW_CCP EMIR authorised: third place goes to Poland
KDPW_CCP, the main Polish clearing house, announced today that it has been authorised by its national regulators as a CCP under EMIR. It joins NASDAQ OMX and EuroCCP as the third authorised CCP to date, from a total of 22 initial applications to ESMA. Its application stated an intention to clear the following instruments: IRS\FRA\FX […]
Next EMIR CCP Authorised
ESMA has updated its list of EMIR CCPs to confirm that European Central Counterparty N.V. was authorised on 1 April 2014 for the clearing of OTC and ETD equity securities. There are now two EMIR CCPs following the authorisation of Nasdaq OMX on 18 March 2014.
SEC- Proposed Rules for Systemically and Security-Based Clearing
The SEC has published its proposed rules that seek to enhance the oversight of clearing counterparties assessed by the FSOC as “systemically important” or that transact deals with a “more complex risk profile”, such as security-based swaps (“covered clearing agencies”). The covered clearing agencies would be subject to new and “more robust” requirements with respect […]
EMIR Central Clearing Agreement: agree in haste, repent at leisure
This week’s authorisation of Nasdaq OMX as the first QCCP under EMIR should serve to concentrate the minds of the many firms who do not already have a client clearing agreement (CCA) in place. The client clearing document suite defines and governs the relationship between the client and their clearing broker. Mandatory clearing of certain […]