Central Counterparties Banks argues Clearing incentives – are not there :

In a recently concluding submit at Risk‘s OTC Derivatives Clearing Summit in New York. Representatives from Goldman imagesSachs argued that :

“Regulators want capital and margin rules to encourage central clearing, but analysis suggests costs may currently be higher in the cleared world”

So what does he mean let’s try to look at the existing capital and margin rules may not encourage market participants to centrally clear their over-the-counter derivatives trades. The capital regime for both cleared and uncleared trades is still unsettled, as is the margin regime for transactions that remain bilateral, but regulators are keen to ensure the framework pushes trades towards central counterparties (CCPs). As things stand,costs may be higher in the cleared world, particularly for market participants that have a directional book of trades. Continue reading “Central Counterparties Banks argues Clearing incentives – are not there :”


Corporate bond market and  equity market is interlinked , for when there is a bad news about the company the share prices goes down and the corporate bond prices goes down. The corporate bond market is also deeply linked to the government bonds market if the interest rate goes up bond prices of both the market goes down. Currency spot and derivative market of the world are also connected with the India bond market.

In India it’s been treated differently and had failed. In order to achieve progress critical requirement is to make perspective of the Bond Continue reading “BOND CURRENCY DERIVATIVES: (Back to School)”

Commodities market and the Indian govt. Saga

I did a post 3 years back and I can confirm the stalemate continues. Later on this I did a series of post but don’t know when the revolution will happen for the Indian commodities market. The The Great Indian commodities market was written with some hope recently.

Here is my initial post. Continue reading “Commodities market and the Indian govt. Saga”