The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Derivatives – a quick reckoner..

Mike Mackenzie’s great FT commentary notes the new Derivatives rodeo in full glory..

Central Clearing covers at bet less than 20% of the Derivatives market, nearly $100 tln though and that is a whole lot.

The OTC CDS registration may still be limited to US derivatives and 90% of derivatives are traded outside the US ( $550 Tln)

Credit Risk assessmsent modelling may still be prorietary though sooner thn later the Fed may as the same to be sahred with them and Exposures listed after appropriate IAS39 matching

Dodd Frank though will replace Sarbannes Oxleya s the new government method to prove the independence of regulation and markets from each other, despite the best efforts of thousands of SIFMA and ISDA suggestions. ISDA contracts remain the only standard for OTC or Central Clearing derivatives as of today.

Enhanced by Zemanta


%d bloggers like this: