Author: Luke Trigg

The future of derivatives, securities lending and repo contract flows

Posted on by Luke Trigg

Putting it all together – ISDA Collateral toolkit, Common Domain Model, Clause Library, Smart Contracts. Back in 2013, Paul Kelly and I documented the state of negotiated ISDA documentation and the challenges it posed for the negotiation and onboarding processes as well as the high cost to derivatives participants – see Million Dollar Spreadsheet.   Winding Read more about The future of derivatives, securities lending and repo contract flows[…]

Derivatives Contract Risk

Posted on by Luke Trigg

Better risk management preparations in light of COVID-19 Shock The economic fall out from the global pandemic is already being felt in a number of places in the financial sector, but the true extent is still largely hidden with governments doing their best to prop up economies.    A glimpse of the contractual risks in Read more about Derivatives Contract Risk[…]

Regulatory Capital / IMM

Posted on by Luke Trigg

The ECB recently published its assessment methodology for banks using the internal model method (IMM) for calculating counterparty credit risk and credit valuation adjustment risk.  Given the very large differences IMM has on regulatory capital versus standard methods this is a useful guide for those looking to adopt IMM but also those already using it Read more about Regulatory Capital / IMM[…]

Is your contract analysis tool just a new version of an expensive spreadsheet?

Posted on by Luke Trigg

Way back in 2013 I wrote an article in FX-MM magazine (no longer operating) about the ‘false economy of the million dollar spreadsheet’.  The article was inspired by the panic that happened across the financial markets in the wake of the financial crisis.  Banks poured lots of resources (and expensive legal review) into pulling out information from Read more about Is your contract analysis tool just a new version of an expensive spreadsheet?[…]

LIBOR-Lite Module Launched – Low Cost Start To Benchmark Reform

Posted on by Luke Trigg

Stop talking, start doing! Logical Construct are pleased to launch a new LIBOR module designed for organisations looking for a low-cost solution to automate the first stage of benchmark reform contract analysis. Recent market surveys indicate a large number of organisations are yet to start tackling benchmark reform, with many completely unsure of the scale Read more about LIBOR-Lite Module Launched – Low Cost Start To Benchmark Reform[…]

LIBOR transition: The FCA is thinking about conduct risk – are you?

Posted on by Luke Trigg

The LIBOR transition is one of the broader reaching changes to affect the financial services industry in recent years due to the wide range of products it affects. As part of that process many existing financial products offered to clients will need to change, so along with the obvious costs and financial and operational risks Read more about LIBOR transition: The FCA is thinking about conduct risk – are you?[…]

LIBOR in Lyncs

LIBOR Benchmark Reform and Regulation in Lyncs

Posted on by Luke Trigg

Document remediation projects are not new.  Anyone working in Capital Markets in recent years can probably describe the steps involved as they tend to be similar each time.  Recent battle scars in the derivatives world include Uncleared Margin Reform (UMR) where large volumes of derivatives documents had to be amended – first for variation margin and more Read more about LIBOR Benchmark Reform and Regulation in Lyncs[…]

Support for the Bank Resolution and Recovery Directive (BRRD)

Posted on by Luke Trigg

Are you on top of your trade contracts with respect to BRRD and the 43 information fields required? The required BRRD information must be drawn from a combination of transactional, reference and legal contract data. While most banks will have the transactional and reference data in a digital format, many will not have the required Read more about Support for the Bank Resolution and Recovery Directive (BRRD)[…]