Clearing Models in a SEF world


Kevin McPartland of the Tabb Group hosted a Fixed Income event last Tuesday in New York. According to our sources, the event was hugely oversubscribed – not surprising given Tabb Group & Kevin’s focus and insight on Dodd-Frank  and itss intended and unintended consequences.

According to Wall St & Technology, one of the areas of discussion was understanding how clearing will function so that execution risk is mitigated. In short, if a trade is done through a SEF, that trade is not complete until the clearer has accepted it. Which means that the counterparties (or their clearing agent/FCM) are still at risk until the acceptance has happened. Hence the focus on how that risk can be mitigated.

The proposals fall into two groups: Continue reading

Straight-Through Processing is Coming to Swaps (Securities Industry News)


On March 31, Deutsche Bank electronically traded and cleared an off-exchange interest-rate swap on behalf of a hedge fund client in what it termed “one seamless move.”

The development may mark the first time an over-the-counter interest-rate swap has been handled electronically from order to clearance, for an institutional buyer.

The trade was executed on Deutsche’s proprietary, single-dealer electronic trading platform, called Autobahn. The transaction was confirmed over Markit Wire, the confirmation-affirmation “matching” service of MarkitServ.

Read more at Securities Industry News

Follow

Get every new post delivered to your Inbox.

Join 1,078 other followers