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Central Clearing

All articles tagged with #central clearing

SEC Implements Reforms to Safeguard $26tn Treasury Market

Originally Published 2 years ago — by Financial Times

The Securities and Exchange Commission (SEC) has voted in favor of expanding central clearing in a major overhaul of the $26tn Treasury market. The move aims to enhance transparency and reduce risk in the market by requiring more transactions to be cleared through central counterparties. The SEC's decision comes as part of broader efforts to strengthen the resilience of the financial system and prevent another financial crisis.

business finance central-clearing expansion finance overhaul sec treasury-market

"SEC Rule Sends Shockwaves Through Treasury Market"

Originally Published 2 years ago — by Reuters

The U.S. Securities and Exchange Commission (SEC) is expected to soon finalize a rule aimed at regulating debt-fueled bets by hedge funds in the Treasury market and strengthening financial stability. The rule would require more trading in the $25 trillion Treasuries market, including repurchase agreements, to be centrally cleared. However, the details of the rule, such as the implementation timeline and whether it will be phased in, remain unclear. Market participants are concerned about the potential impact on the industry, including increased costs and the possibility of traders withdrawing. The rule comes as banks have already pulled back from the Treasury market, and its effects on the industry are not fully understood.

business finance central-clearing finance financial-stability hedge-funds sec-rule treasury-market

The Troubling Impact of Credit Default Swaps on Europe's Banks.

Originally Published 2 years ago — by Reuters.com

Credit default swaps (CDS) are derivatives that offer insurance against the risk of a bond issuer not paying their creditors. The CDS market is worth around $3.8 trillion, but the market is well below the $33 trillion of its heyday in 2008. The biggest CDS market is for governments. CDSs were one of the financial instruments at the centre of the 2008 financial crisis. The current turmoil does not reflect a steep drop in the value of the securities that underlie the CDS.

business finance cds-market central-clearing credit-default-swaps european-banks finance risk-mitigation