Archive for derivatives SmartBlogs
Financial derivatives are sometimes a savior, but in other times, a curse. Although their earliest documented use was in the form of rice futures in the 1700s, they have grown in popularity in recent times for hedging known risks, but have also drawn criticism as a tool of speculation. American International Group, for example, lost $18 billion on credit default swaps during the financial crisis.[…] Continue Reading »
With swaps and derivatives likely to play as critical a role in the year to come as ever before, SmartBrief asked Stephen O’Connor, chairman of the International Swaps and Derivatives Association and managing director at Morgan Stanley, to share his insight on regulatory reform, his association’s evolving role in the marketplace and other changes coming in 2012.[…] Continue Reading »
Panelists tasked with dissecting the impact of the Dodd-Frank Act at the Futures & Options Expo touched on topics including position limits, margins, swaps dealers and clearing, but the one topic that kept creeping back into the conversation was regulatory arbitrage.
Regulatory arbitrage has long been on the minds of market participants worried that liquidity would shift to countries with the lightest regulatory regime.[…] Continue Reading »
Basel III and reform of the over-the-counter derivatives market continue to be hot topics in the financial-services industry. At this week’s Sibos 2011 conference, SmartBrief sat down with Brian Traquair, president of SunGard’s capital-markets business, to get his take on how the reform is taking shape.
What is your assessment of Basel III?
In terms of ratios, the hit on capital is going to be immense.[…] Continue Reading »
Federal Reserve Chairman Ben Bernanke said Wednesday a default by Greece won’t have a serious negative impact on U.S. financial institutions. He conceded a Greek default would “no doubt roil financial markets globally,” but that such a default would do little damage to U.S. banks and money-market mutual funds. Billions of dollars worth of complex derivatives would be affected by a default by Greece, and Bernanke would have us believe U.S.[…] Continue Reading »