Opinion/Risk Management

CCP costs keep creeping up

While US regulators consult the industry over the exemption of foreign exchange products, the systemic risks and increasing costs of using central counterparty (CCP) clearers continue to be highlighted.

No margin for error

Are money market margins a new science or just an overhaul? By Carl Martin, group technology director at Eurobase Banking Solutions in London

Why aren’t the Greeks using CLS?

A lesson learned from the Lehman Brothers bankruptcy was that, at times of stress, CLS plays a central role in ensuring forex traders are protected. It seems surprising then that only one Greek bank is using the settlement system.

Clearing exemption too close to call

Exempting commercial hedgers from mandatory clearing could create a loophole for the institutional investors often blamed for driving up commodity prices, according to the chief lawyer for the Commodity Futures Trading Commission (CFTC), reports Risk.net.

An imbalanced proposition

At the time of going to press, decisions on the future of the foreign exchange markets was still hanging in the balance, as regulators in the US debated the inclusion of forex swaps and forwards into the over-the-counter derivatives reforms.

Economics should drive change

The decision to include foreign exchange swaps and forwards in the US over-the-counter derivatives reform bills run counter to research conducted by central bank-backed foreign exchange committees.