Tag Archives: Netting

Disputed derivative transactions – Santander and Pourtuguese Rail Operator

I happened to read today a news item on disputed derivatives transactions. It is reported therein, the dealers settled a crop of disputed derivatives trades with Portuguese state owned entities last year with one exception – Santander...

Interest Rate Derivatives and their wrong sales to gullible customers

Banks are more in the news these days – for a variety of reasons with negative impact of course.  Of all these, the one connected with mis-selling of interest rate derivative products is causing considerable damage. The kind of allegations...

Counterparty risk management needs a closer relook

Counterparty risk is the risk that a counterparty in a transaction will default prior to the expiration of the contract and will be unable to make agreed contractual payments Experience has shown, normally banking and financial crises have their...

Best Practices Framework for Derivatives Business

 “The world of banking has changed radically as a consequence of the recent crises and it is still changing. The rise of the universal banking model seems almost unstoppable, basically driven by the desire for an accelerated consolidation....

Central Counter Parties have a greater role to play

This blog makes an attempt to cover the role of central counterparties in four parts as under: Part A– All about Central Counterparties Part B– Best practices framework for CCPs Part C – Some loud thinking on their future roles Part D...

OTC Derivatives’s Central Clearing – the focus

The introduction of legislation in the US and Europe to move settlement of some OTC derivative products through a Central Counter Party is the much talked about topic among leading bankers. The aim of this legislation is to bring in much needed...

Fundamentals and basic instincts drive FX Markets

Bank for International Settlements, Basel, Switzerland conducts triennial central bank survey on foreign exchange and derivatives market activity. The last such survey was conducted in April 2010. As per the findings of this survey, Global Foreign...

Role of central counterparties and processing of OTC derivatives

This post makes an attempt to cover the role of central counter-parties and processing of OTC derivatives in four parts as under: Part I – All about Central Counterparties Part II – Best practices framework for CCPs Part III – Some loud...

SDRs – Emerging Intermediaries in US Financial Markets

Clarification: For the purpose of this discussion, SDRs are not Special Drawing Rights. They are Swap Data Repositories. Swap Data Repository, a Financial Markets Intermediary, is an entity that will be expected to maintain a centralized electronic...

The Art and Science of Securing Securities Lending Business

Securities Lending is an OTC market business practice that involves borrowing and lending of securities mainly for the purpose of covering short-sale positions. Sometimes, it is also be used for derivative hedges and dividend arbitrage across...