OTC MARKET NEWS Powered By Quantifi

Buy-side struggling to report collateral of transactions according to new report 

August 19, 2014
Andrew Sachs McLeod, LeapRate

One year has passed since the finalization of the entirely overhauled rulings on OTC derivatives in North America, with the Commodity Futures Trading Commission (CFTC) and Securities and Investments Commission (SEC) having ended three years of consultation, bureaucracy and Senate meetings. This year is Europe’s turn to finalize its continental rulings, conforming to the global standards spearheaded by the United States last year.

Although great steps have been taken so far with regard to establishing a framework for trade reporting and processing, the buy-side is struggling to report details of the collateral of their non-clearable derivatives transactions as mandated under the European Market Infrastructure Regulation (EMIR) while trade repositories are unlikely to reconcile the data they receive.

According to a report today by peer group network for senior operations officials COOConnect, financial counterparties and non-financial counterparties above certain thresholds began reporting on August 12, 2014 details of their daily collateral posted against open positions and its value on a mark-to-market or mark-to-model basis. 

Read more: LeapRate

Comments are closed on this post.


Submit your email to receive our newsletter