Senate committee hearing on JPM loss – possible industry implications on derivatives infrastructure

Posted by on Mar 15, 2013 in Classification, Derivatives Infrastructure, Regulatory, Risk, Volcker | 0 comments

Today’s Senate Sub-committee hearing on last year’s credit derivatives trading loss at JP Morgan’s CIO office makes, in some segments, for riveting Q&A. The Senate sub-committee report released yesterday (as well as JPM’s own internal report) also makes for very compelling reading.

Both reports, and the sub-committee hearing, highlight some very specific control and reporting issues that are unlikely to be unique to JPM. The hearing also was (somewhat) critical of the Office of the Comptroller of the Currency’s (OCC) oversight. It would seem more likely than less that regulatory oversight of these issues will see increased  focus and scrutiny across the industry.

Below, we list nine (9) possible implications. Using our schematic of key post-DFA process and data flows within OTC derivatives infrastructure, we also highlight the functional areas we believe may see such increased regulatory oversight scrutiny as a consequence.

Dealer firms will be well served to consider conducting current state analyses and

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It’s March 11th. Do you know where your collateral is?

Posted by on Mar 11, 2013 in Dodd Frank, Noteworthy, Regulatory, Whitepaper and Downloads | 0 comments

The OTC derivatives clearing mandate is upon us.

We will be running a series of Prezis called the “Making lemonade from lemons” series. This series, like our similarly titled whitepaper, will be looking beyond compliance to the Dodd-Frank Act (DFA), and examining the opportunities for competitive advantage that the challenges of the DFA present.

First Prezi in our series is focused on Clearing and Collateral.

The Prezi is best viewed in full screen mode (for normal sighted folk),

and may also be found on the Prezis and Case Studies tab on our Whitepapers and Case Studies page.

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