WWW - Posts tagged Interest rate swaps at BloggingStocks

interest rate swaps posts

Banks plan to clear 90% of their new swaps with a clearinghouse by December

Posted Sep 9th 2009 2:20PM by Connie Madon (RSS feed)
Filed under: Launches, Industry, Market Matters, Technology, NASDAQ

A new day is dawning for regulation of interest rate swaps. Fifteen banks have agreed to clear 90% of new credit derivatives by December. Banks will also submit 60% of existing interest rate swaps to a central counter party.

What does this mean? It means that trades will clear through an independent counter party called a clearinghouse. What then is a clearinghouse? A clearinghouse is a central counter party that serves as buyer to every seller and seller to every buyer. Commodity futures trades pass through a clearinghouse.

What kind of numbers are we looking at? The interest rate swaps market is a $403 trillion market.

Continue reading Banks plan to clear 90% of their new swaps with a clearinghouse by December

JPM posts nice profit from OTC derivatives, but what toxicity is still on the books?

Posted Mar 4th 2009 2:40PM by Connie Madon (RSS feed)
Filed under: Good news, JPMorgan Chase (JPM)

It was indeed refreshing to read that JP Morgan Chase & Co (NYSE JPM) was able to reap $5 billion from over the counter derivatives markets trading in 2008, during the worst year in Wall Street history.

Some profits from interest rate swaps, municipal bond and foreign exchange have been kept confidential but let's hope we can assume the same rosy profits in these areas also.

Continue reading JPM posts nice profit from OTC derivatives, but what toxicity is still on the books?