OTC Derivatives Clearing

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 “OTC Derivatives Clearing”

ISDA: A Bible for Over-The-Counter (OTC) Market

downloadAs, Our blog is on global finance markets which, also includes OTC market as a major part of it. OTC market is regulated by ISDA guidelines thereby, ISDA acts as a “bible for an entire OTC Market”. Hence, our topic for today`s discussion is ISDA.

ISDA stands for “INTERNATIONAL SWAPS & DERIVATIVES ASSOCIATION“. ISDA is an association created by the private negotiated derivatives market that represents participating parties. This association helps to improve the private negotiated derivatives market by identifying and reducing risks in the market. Continue reading “ISDA: A Bible for Over-The-Counter (OTC) Market”