OMG Commitments

-- Proposed new regulation for derivatives market is expected to be formally release mid-month

Earlier this week, at a Senate Agriculture Committee hearing, CFTC head Gary Gensler, announced his proposed plan for changing the way the derivatives market and its participants are to be regulated. The details of the final regulation plan will be formally announced later this month.

TriOptima announced that banking regulators have received the first reports from the newly-launched OTC Derivatives Interest Rate Trade Reporting Repository (“the IR TRR”). Fourteen major financial institutions submitted data for their non-cleared OTC interest rate derivatives trade portfolios covering trades with G-15 institutions, buy side organizations and other financial and non-financial institutions.

2010 is the year of unfinished business.

New industry initiatives aiming to address inefficient and faulty areas of the OTC derivatives post-trade processing space have launched while others market changes are in the works. All the while regulators and legislators on both sides of the pond continue to deliberate on reform of the OTC derivatives market. 2010 may seem like it will be more of the same but the introduction of new regulation will undoubtedly revolutionize the industry.

- Part 2 of “When is a Data Repository Not…"

In a previous article, Simon Hopper outlined the specific design, functionality and operation of a data repository. In part two of the series, he provides further analysis on the use of data warehouses for the purpose of financial markets’ oversight. This article clarifies the main differences between operational processing and information reporting systems and explains the consequences if these differences if they are not considered today as when market works towards implementing a data warehouse for OTC derivatives. 
 
 

Earlier this year, some participants in the financial industry agreed to implement a “data repository” for credit, interest-rate and equity derivatives to facilitate the market wide recording of trade data and therefore improve the transparency and disclosure of the OTC derivatives market. However, the definition of a “data repository” is widely misunderstood and its design and functionality unclear.

The Asset Management Group of the Securities Industry and Financial Markets Association (SIFMA) today outlined a framework for over the counter (OTC) derivatives risk management and market structure. SIFMA, along with the senior managements of a group of dealers, asset managers and investors, offered the framework and reiterated its commitment to reducing systemic risk in the OTC derivatives market in a letter to the Federal Reserve Bank of New York.

The International Swaps and Derivatives Association, Inc. (ISDA) today jointly submitted a letter with market participants and industry associations to the Federal Reserve Bank of New York.

Part 3 of the OMG Commitments Series

Sapient's Gil Koenigsberg and Nick Fry explain why a smaller volume of equity derivative transactions are electronically confirmed compared with interest rates and credit derivatives

Part 2 of the OMG Commitments Spotlight Series

In the second installment of DerivSource's OMG Commitments Spotlight Series, Christopher Natale  of Sapient discusses the regulatory commitments made by the Operations Management Group as they relate to lifecycle event processing and explains the industry's new 'game plan' for optimizing workflow in the future.

Reducing the backlog of confirmations of derivatives contracts remains a big problem for our industry.

Christoper Natale of Sapient explains how far we have come in reducing the confirmation backlog and suggests what the industry needs to do to tackle this problem in the current market climate and to meet the commitments made by the Operations Management Group.