Posts filed under “Derivatives”

ISDA Proposal: Standardized OTC Derivatives

This is rather interesting:

“The International Swaps and Derivatives Association (ISDA) has proposed a new reference data registry for standardized over-the-counter derivative contracts which would leverage the FpML standard to provide a basic description of the contracts and identification codes through their lifecycle.

The New York-based trade association for the $700 trillion market defined standardized OTC derivatives as those which are electronically executed or centrally cleared through a clearinghouse.

The registry, says ISDA, will simplify trade processing and reporting of OTC derivative contracts because financial firms can abstract the economics of the trade through reference data instead of having to specify them as part of each transaction.”

Comments are due on ISDA’s proposed derivative product registry (DPR) by May 8.

Hat tip Louise Story

ISDA Proposes Registry for Standardized OTC Derivatives
Chris Kentouris
Securities Technology Monitor, April 18, 2011

Category: Derivatives, Regulation

United States Senate PERMANENT SUBCOMMITTEE ON INVESTIGATIONS Committee on Homeland Security and Governmental Affairs Carl Levin, Chairman Tom Coburn, Ranking Minority Member Senate Report GS

Category: Bailouts, Derivatives, Think Tank

Are Oil Prices Driven by Speculators?

> Fascinating chart above via David Wilson of Bloomberg. It very much suggests that while Speculators may not have been the prime mover on the 2008 Oil peak, the specs seem to be a very large portion of the current push. By comparing the net number of contracts owned by non-commercial oil traders (Source: Commodity…Read More

Category: Derivatives, Energy, Trading

Drawing the Correct Lessons from Lehman Bros

“It wasn’t a mistake to let Lehman fail, it was a mistake to let it live so long.” -Ann Rutledge, a principal with New York-based R&R Consulting and the co-author of two books on structured finance. > I am continually astounded by the many missed opportunities you Humans have to learn valuable life lessons. Perplexingly,…Read More

Category: Bailouts, Corporate Management, Derivatives, Legal, Regulation

Industry Code: IBGYBG

The phrase I was looking for in the last post was “I’ll be gone. You’ll be gone.”

Iain Bryson was the first who suggested it, and I then tracked it down to a few sources, the first of which was Jonathan A. Knee’s “Accidental Investment Banker.

Its also mentioned in this 2009 video:


click for video

Transcript after the jump

Read More

Category: Bailouts, Derivatives, Really, really bad calls, Wages & Income

Gasparino: Spitzer Caused the Financial Crisis

I like Charlie Gasparino. I really do. He used to be a sharp elbowed, hard nosed WSJ reporter that dug for stories. Blood on the Street: The Sensational Inside Story of How Wall Street Analysts Duped a Generation of Investors remains a great read. But like many pundits on the right, he simply has a…Read More

Category: Bailouts, Derivatives

GOP: More Madoffs, Please

Percent Change SEC Staff Workload: 1991 – 2000 Chart sourced via GAO analysis of SEC data > If you can’t stop the legislation, you can defund it. That is what our Chart of the Day shows, the net impact of defunding regulation. As we previously discussed 1 year ago (SEC: Defective by Design?), there has…Read More

Category: Derivatives, Really, really bad calls, Regulation

GM Credit-Default Swaps on Non-Existent Debt

A mere technicality, my good man! WSJ: “Banks and hedge funds are trading credit-default swaps, which make payments to holders of General Motors bonds in the event of a default. But GM canceled $40 billion of debt in bankruptcy and has pledged to cut its remaining $4.6 billion bank loan to the bone this year….Read More

Category: Derivatives

Did Goldman Sachs Kill AIG ?

I have to take issue with William Cohan’s Op-Ed, How Goldman Killed A.I.G. First off, let me start out by saying that these are two bad actors; there are no “good guys” here. Second, let me remind the reader that AIG under-wrote $3 trillion worth of derivatives, a massive high-risk exposure — and collected $3…Read More

Category: Bailouts, Credit, Derivatives, Really, really bad calls

Astroturfing: Study Falsely Claims Economist Affiliations

“This is the first I have heard about it. It’s not a very good report.” -Joseph E. Stiglitz, Nobel-winning economist > Dealbook: “A new study backed by pro-business groups takes a harsh stance on rules intended to bring transparency to the $600 billion derivatives market. The report, published on Monday, claims that proposed regulation could…Read More

Category: Derivatives, Regulation