Navigating the regulatory maze.
The world leaders and regulators pledged to reduce systemic risks and complexity across derivatives markets in the wake of 2008 financial crisis.
As clearing participants seek to comply with the Dodd-Frank and EMIR regulations, they face significant challenges in creating robust derivatives clearing capabilities. Global CCP connectivity, complex segregation models, new margin methodologies and varying trade reporting requirements keep clearing participants up at night. Cross-margin offsets and capital relief allow clearing participants to enjoy the benefits of clearing.