In light of new regulation, traders are now finding themselves managing requests for collateral and handling margin calls from central counterparties, says Georges Bory, MD and co-founder, Quartet FS.
As the global financial crisis unfurled over the
last five years, discussions about risk were propelled to
the top of the agenda for most financial institutions.
One result of this heightened focus on understanding and
managing risk has been a new holistic approach, with middle and
back offices no longer exclusively handling risk management and
The front office now plays an active and important role, one
which is also required by recent changes to the regulations
governing risk. For example, the Dodd–Frank Wall
Street reform and consumer protection actand European Market
Infrastructure Regulation (EMIR) have introduced a new central
clearing process to over-the-counter derivatives trading to
limit counterparty credit risk. In light of this new
regulation, traders are now finding themselves managing
requests for collateral and handling margin calls from central
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |