Discover our latest industry insights, technical articles and more about clearing risk management for exchange-traded derivatives.
In a rapidly evolving digital landscape, the financial sector, including the derivatives markets, faces unprecedented challenges in terms of cyber threats and information and communication technology (ICT) related disruptions.
The recent cyber incident involving ION, a major vendor in the financial industry, served as a wake-up call. The industry’s operational resilience was tested and the consequences were significant.
As we navigate through the exciting digital landscape of fintech, we stand on the brink of a new era. We have been witnessing the increasing advancement and adoption of innovative technologies, including cloud computing, artificial intelligence and Web 3.0.
The Covid-19 pandemic has caused a period of high market volatility in March 2020. Notably, large increases in aggregate margin requirements were seen in both the centrally and non-centrally cleared markets.
As the price of crude oil futures plummeted to -$40 a barrel, the Black 1976 options pricing model - which cannot handle negative prices - was switched to the Bachelier model. But what are the implications of this switch?
Derivatives users are probably aware of the Standard Portfolio Analysis of Risk (SPAN) method used by most CCPs globally. Many would say that an update to the decades-old SPAN methodology is long overdue. For this reason, CCPs are gradually shifting from SPAN to VaR-based methodologies for margin calculation.
