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Category: Financial Regulations


Europe finally has agreed on the terms of MiFID II, extending its regulatory reach into fixed income, FX, OTC trading and blogcommodity speculation. Here are seven details you need to know as implementation begins.

We still have technical meetings to go through to finalize details, so the complete text is unlikely to be available until won or close to January 27, but here is what we understand so far:

1.  HFT will be restricted through greater testing of algorithms, but there will be no 500 m/s rule.

  • Final organizational requirements for investment firms engaged in algorithmic trading have been passed to ESMA Technical Guidelines for greater analysis concerning the risks potentially raised by technology-advanced trading practices.  Continue reading
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Dr. David Murphy of the Deus ex Machiatto blog has published a comprehensive book on clearing of OTC derivatives (OTC blogDerivatives, Bilateral Trading and Central Clearing, Palgrave Macmillan, 2013). I was surprised that the author information on the book cover flap does not mention the blog at all but gives prominence to his having been head of risk at ISDA..

The book presents a balanced discussion of most issues while of course leaning towards the ISDA view of things. Many of the arguments in the book against the clearing mandate would be familiar to those who read the Streetwise Professor blog. Yet, I need to read the book completely the information sharing is from the extract.

Continue reading

Initially thought of sharing my review on the Wolf of Wall Street today, but I do not wanted to break the series of the EMIR blogregulations that we ended up yesterday choosing the Trade repositories (TR). Now we stand at the point from the Question no.4 of yesterday’s post.

a) Choose a 3rd Party Provider, following your decision to delegate

b) Decide which TR you will connect to, if you will self-report

c) Liaise with your counterparties to find out their requirements, if you will delegate reporting to them.

Question 4: What are the criteria to be taken into account before choosing my 3rd Party Providers?

The 3rd Party Provider should help you adapt to the new workflow for Trade Reporting as it will serve as the go-between with TRs.  Continue reading

As we know this will be the year of Regulators across the globe, the deadlines are approaching to implement the regulations and Googlesome regulations already imposed on the financial industry. Trade Repositories to offer their services to Europe’s entities and ESMA’s updated version of EMIR implementation timeline showed the 12th of February as the start date for trade reporting, for all derivative asset classes, for both ETD and OTC derivatives.

Addressing few questions today and will continue to address in the future posts.

Question1: What’s your budget for Regulatory projects? Continue reading

Here are 10 questions that you should know if you are based in the European Economic Area and trade in derivatives, whether on-blogexchange or “over-the-counter” (OTC), then you will be impacted by EMIR. This could include real estate investors who use derivatives and swaps (e.g. hedging interest rate and currency risks) to reduce risk rather than for speculative purposes. The exact impact of EMIR will depend on the type of firm, as well as the level and type of derivative exposure of the particular firm.

  1. Should I care about EMIR? (I should hope so)
  2. What are the requirements under EMIR? Continue reading
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