Clearing

As the market in Europe prepares for the commencement of mandatory clearing, new clearing structures are being devised by CCPs (central counterparty clearinghouses) to make the process smoother, more cost efficient and, perhaps most pertinently, more collateral efficient for clients.

With increased demands being placed upon collateral, collateral management and optimisation has never been more important. Being able to source the right collateral at the right time is vital.

In the world of capital markets, the public spotlight has predominantly fallen on pre-trade and trade analysis. The media focusses its attention on the price of shares, the movement of currencies, the possibility of changes to interest rates and the fundamentals of markets, as well as corporate news.

Reporting of derivatives has not been aimed at lay trustees but this will change as pension funds look for more in-depth risk analysis.

Rumours have spread around Brussels that ESMA could yet insist on backloading existing trades into CCPs but the European parliament will block any such move, says Kay Swinburne MEP

Pension fund exemption from clearing obligation confirmed until August 5 2015 but August 2013 finalised as latest date for reporting to commence

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