To drink your own champagne (or eat your own dog food – “dogfooding“) has come to mean using the software that you develop, to ensure it is fit for purpose and show confidence in it. The “dogfooding” phrase is often attributed to Paul Maritz at Microsoft in the 1980’s where he sent an email ‘Eating Read more about Drinking our own champagne (aka dogfooding) – we do![…]
The fact that this year the AGM operated as a virtual conference is perhaps a fitting backdrop for the push towards digitisation in the derivatives markets. While obviously lacking the easy networking that naturally comes from in-person events, the content delivery itself worked very well. It had a more global feel – with speakers and Read more about Digitisation highlights at the ISDA AGM[…]
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[…]
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[…]
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[…]
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?[…]
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[…]
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?[…]
While uncertainty still remains about what the migration path from LIBOR, EURIBOR and other rates affected by the reform really is, there is no doubt that change is inevitable. The one part that is certain therefore, is being able to identify which of your contracts are affected: They reference one of the rates; They will Read more about LIBOR Module[…]
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[…]