Regulation has mandated that standard OTC derivative transactions must be cleared through a qualifying Central Counterparty (CCP). Bilateral margin rules are being introduced to cover OTC derivatives that cannot be centrally cleared. The clearing mandate and bilateral margin requirements call for significant amounts of initial margin to be posted to CCPs and bilateral counterparties. This, along with related changes, is creating a dramatic shift in the topology of financial markets and a significant reallocation of counterparty and systemic risks. Their pricing implications are also receiving significant attention.
This course explores in detail the mechanics of central clearing and the bilateral margin rules for OTC derivatives as well as assessing the potential future landscape along with the opportunities and risks created. The programme is suitable for both banks and end-users of OTC derivatives.
All delegates receive a copy of Dr Jon Gregory’s book “Central Counterparties: Mandatory Clearing and Bilateral Margin Requirements for OTC Derivatives”, published by Wiley Finance.