Risk.net
Latest
China netting law drives interest in CSAs
Steady growth in contracts with CSAs suggests confidence that clean netting is near
Quantum trading and the search for the perfect clock
Government push to overhaul satellite technology could improve time-stamping accuracy for trading firms – and for regulators
UK banks interest rate swap exposures fall £711bn
Credit derivatives exposures bucked the downward trend, growing 16% quarter on quarter
Latest
Risk Quantum
Data insights, delivered daily
Risk Quantum finds insights in data. The service tracks the public disclosures of over 120 banks, funds, insurers, corporates, and central counterparties – as well as reports from prudential and markets regulators – in Asia, Europe and North America.
UK banks interest rate swap exposures fall £711bn
Credit derivatives exposures bucked the downward trend, growing 16% quarter on quarter
Editors' choice
Page 19901: the benchmark that time forgot
CFTC probe into swap price rigging revives the ghosts of Libor manipulation
Big Figure
Time for action
Late or insufficient action to tame climate change could significantly affect some of the main benchmark rates, the Bank of England projected in its 2021 biennial exploratory scenario (BES) exercise. The BES considers two pathways to net zero greenhouse gas emissions: an early action (EA) and a late action (LA) scenario. It also includes a no additional action (NAA) scenario. Under the LA scenario – where governments rush to reach a 2050 net-zero target in just two decades – the sterling overnight interbank average rate (Sonia) is expected to plummet from a projected annual average of 85 basis points in 2030 to just 6bp the following year as policies are suddenly implemented. Under the same scenario, the secured overnight funding rate (SOFR) would drop from a projected annual average of 83bp to 11bp.
Read the full article
Derivatives
Inside Wells Fargo’s bid to take on big FX players
The third-largest US bank by assets plans to use big corporate flows to lure institutional clients
Receive this by email
Comment
Hedge funds and the rebound in collateral velocity
Op risk data: UBS, Nomura, UniCredit hit with $450m cartel fine
Clock auctions: a stitch in time for Libor?
If dogecoin goes to the moon, a risk manager should go too
Our Take
The limits of a softly-softly approach on climate in China
Time for BoE to rethink the leverage ratio
Synthetic data enters its Cubist phase
Who’s afraid of the RPI-CPIH judicial review?