Blog Posts

Discover our latest industry insights, technical articles and more about clearing risk management for exchange-traded derivatives.

Strengthening Operational Resilience in Financial Markets

Operational resilience in financial services ensures firms can withstand and recover from disruptions, maintaining critical operations under adverse conditions. This concept is crucial due to increasing risks from cyber threats, technological failures, and other operational challenges.

Insights from ESMA's 2023 Global CCP Fire Drill

As derivatives market participants, staying informed and prepared for potential market disruptions is critical. The recent ESMA report on the 2023 global CCP fire drill offers valuable insights and highlights the importance of these exercises in enhancing the resilience of the financial system.

The Impact of AI and Tokenization on Capital Markets

In an era where technology continuously reshapes the landscape of industries, the futures and options markets are on the cusp of a significant transformation. FIA Boca 2024 illuminated this trajectory, focusing on the revolutionary roles of artificial intelligence (AI) and tokenization in global capital markets.

2023 Annual ETD Margin Rates Overview

Margin rates in the global exchange-traded derivatives markets have reached record-high levels. An insightful analysis of margin rates and anticipating their direction, particularly in the energy sector.

Navigating a New Era in Derivatives Clearing

The landscape of global central counterparty margin models has witnessed a significant transformation in risk management. Central to this shift is the migration from the long-established SPAN model to various VaR-based models.

The U.S. Treasury Market Reforms

The U.S. Treasury market, integral to the U.S. and the global financial system, has evolved significantly over the past decades, representing a staggering 95% of the U.S. GDP today, compared to just 34% 20 years ago.

Understanding ISDA SIMM

As the landscape of derivatives trading continues to evolve, it is crucial for market participants to be well-versed not only in central counterparty (CCP) initial margin requirements but also in the nuances of uncleared derivatives margin.

DORA: A guide for derivatives market participants

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.

Navigating cyber resilience in the futures industry

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.

The future of FMI regulation in the fintech era

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 need for margin calls transparency

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.

Bachelier 1900 vs Black 1976

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?