PORTER TUN
The credit crisis has sent infrastructure providers to the drawing board to design a clearing solution for credit derivatives and other over-the-counter products that would mitigate risk and bring transparency to this opaque market. OTC Clearing facilities have existed for several years in the listed derivatives space so it is not surprising that major futures exchanges would extend their product offerings. In addition, new entrants to the market are offering a variety of models to address the problem. This session will start with an introduction to credit default swaps and then give the various platforms the opportunity to provide information on their model and answer questions about their structure. Must these products be standardized? How will these models address the more customized single-name contracts? How are valuation and margin requirements determined? Is there a way to come up with margining that is economically viable for the clearing customer? Is clearing limited to principles only? If customers participate, is customer margin segregated? Will these contracts be converted to a futures product? Is remote clearing permitted?
Each provider will be asked to present:
- A brief description of the platform including the products being offered, their rationale for the model and the expected timing for launch or activity since launch
- An overview of ownership and governance structure
- The regulatory environment in which it will operate
- Implementation challenges for participants
A panel of industry experts will give an overview of CDS Clearing and pose questions to the infrastructure providers from a business, regulatory, and operational perspective.
Speakers:
Ian Barton, Vice President, European Credit Derivatives Middle Office, Morgan Stanley
Anne Drakeford, Senior Associate, Clifford Chance
Nick Marcelle, Regional Head, European Listed Derivatives Operations, HSBC Bank
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