Browsing: counterparty risk

Posts Tagged ‘ counterparty risk ’

Federal Reserve on Counterparties to the next Lehman Brothers

Nov 2nd, 2017 | Filed under: Newly Added, Service Providers, Insolvency, Operations, Business News, Risk Management & Operations

The Federal Reserve has issued a final rule relating to the qualified financial contracts (QFCs) of global systemically important U.S. banking institutions (GSIBs). Derivatives & Repo Report, a blog maintained by the international law firm Perkins Coie, has done a thorough write-up on the subject, to which the material belowRead More

How Not to Nationalize the Clearinghouses

Aug 17th, 2014 | Filed under: Derivatives, Risk management, Insolvency

Let's not make clearinghouses too big to fail. Or if, through, Dodd-Frank, we already have, let's turn back and reconsider that decision. That's how not to end up bailing them out or nationalizing them in due course. Read More

140% or More: Rehypothecation for Risk Managers

Nov 28th, 2012 | Filed under: Hedge Fund Operations and Risk Management, Risk management

As David Belmont reminds us in his new paper for the Commonfund Institute, in the U.S. there are limits on the practrice of rehypothecation. A broker can only reuse in this way assets of up to 140 percent of the value of the client's liability to said broker. Intriguingly, in the U.K. there are no such statutory limits. Read More