The audience at FILS USA got an in-depth insight into optimising front office technology on Thursday, with a detailed analysis of how desktop interoperability tools can be used to support traders, including their role…
Fixed income trading is well beyond the request for quote (RFQ)-only era, i.e. when the only way for a trader to find the other side of a transaction was by canvassing brokers. But while…
Treasury launches new effort to improve resilience of its market
The US Department of the Treasury, in consultation with the Inter-Agency Working Group on Treasury Market Surveillance (IAWG), has taken the next step in its…
As fixed income market participants eye the threat of a further back-up in yields, liquidity sourcing is being reassessed.
While technology has greatly advanced the capabilities of the trading desk, when bond prices swoon, the…
Getting the next generation of traders to have the right skills and capabilities, without losing the existing market knowledge, requires traders to be multi-faceted, the audience at FILS USA 2022 heard on Thursday.
“It's completely…
The turbulence in fixed income markets over the past six months likely will continue through the second half of 2022, according to Seth Bernstein, President and CEO of AllianceBernstein.
“The Fed has never engineered a…
European including of government bonds within its consolidated tape, and a new joint venture amongst platform giants Bloomberg, MarketAxess and Tradeweb, could allow Europe to leapfrog the US in terms of market transparency. The…
The rollout of FDC3 as a standard to support desktop interoperability between different applications has generated considerable interest in the trading community.
Dwayne Middleton, global head of fixed income trading at T Rowe Price says,…
Every trader attending FILS will be keeping an eye on the markets, as bid-ask spreads continue to tick upwards and volumes remain choppy.
Looking at corporate bond trading volumes over the past two weeks, data…
The buzz at FILS this year reflects the three-year hiatus from in-person events – and the amount of change that has occurred since then.
Discussion between buy-side traders on the Buy-Side Only Innovation Day…
Reaching out into the market to find the other side of a trade is contingent upon the right approach, be that a particular trading protocol or the best pre-trade selection of a specific counterparty.
The…
The Fixed Income Leaders’ Summit (FILS) USA will this year begin after a period of difficult liquidity in bond markets.
MarketAxess data showed trading volumes halve in May for both US and European investment grade…
Bloomberg, MarketAxess and Tradeweb Markets today jointly issued the following statement:
“We are pleased to announce an initiative to jointly explore the delivery of a consolidated tape for fixed income instruments in the European Union,…
This page is dedicated to reports from The Fixed Income Leaders Summit, Nashville, 22-24 June, 2022. More content will follow from Wednesday 29th June onwards. Sessions on the 22nd June, the Buyside Evaluation day, will not be reported.
While every attempt is made to record delegates accurately and obtain quote approval prior to publishing if there are any inaccuracies please contact Dan Barnes.
The majority of asset managers dragged into new uncleared margin requirements over the next two years could avoid tying up capital altogether, but still play by the rules, according to recent research from OpenGamma.
Peter Rippon, CEO of OpenGamma
By identifying which trades to move, in order to make better use of the eligibility threshold, they could significantly reduce the amount of margin they post or eliminate it all together, says Peter Rippon, CEO of OpenGamma.
“There is a deep uncertainty from the industry centred around how to prepare for the new rules effectively,” he said. “But with the right foresight and planning, asset managers can take control now and avoid stumbling through the process later.”
The new requirements force firms with portfolios above a certain aggregate average notional amount (AANA) to exchange initial margin on uncleared derivatives. However, the findings show that out of 300 firms pulled into the final two phases of the global uncleared margin requirements, 74% of asset managers could optimise their portfolios to trade certain derivatives ‘free of margin’.
Although the regulation makes the cost of trading derivatives more expensive, it also gives market participants an opportunity to reduce margin requirements. Much of this centres around the $50m threshold set by the regulator per counterparty under each phase of the rules.
The threshold must be exceeded before the remaining IM needs to be exchanged, meaning asset managers who stay below the threshold or a fraction above it, will reduce the amount of margin they need to post. This reduces the amount of upfront collateral that needs to be posted – freeing up resources to be used elsewhere.