Banks and financial services firms in Asia continue to struggle as they seek to adapt to a rapidly changing – and ever more stringent – global regulatory environment designed to improve transparency of transactions and reduce systemic risks in the financial markerts. In this section, you will see the latest news, analysis, market insights and best practices in managing financial risk, regulations and trading.
The importance of uncleared margin rules (UMR) was brought sharply into view by the collapse of Archegos Capital Management at the end of March, resulting in more than $10 billion in losses at several prime brokers. S&P Global considers how partnerships with third parties can help buy-side firms in Asia prepare for the new rules.
For financial services, compliance is as inevitable as death and taxes. But with compliance costs spiraling amid intensifying competition, banks are finding themselves increasingly squeezed. How can banks effectively and efficiently navigate the shifting compliance landscape? These four best practices can help banks enhance the efficiency and effectiveness of their next compliance project.
One major problem to tackle in the transition from LIBOR to alternative reference rates (ARRs) such as SOFR, €STR and SONIA (which are also referred to as risk-free rates, or RFRs) is how to handle legacy LIBOR positions when LIBOR is no longer published. It is fundamentally a challenging issue. While LIBOR is a credit-sensitive rate, the new risk-free ARRs such as SOFR are risk-free rates without a credit component. However, with the ISDA Fallbacks Protocol the problem is largely resolved. Or is it?
Solutions to help financial institutions measure and manage their counterparty credit risk, market risk, regulatory risk capital and derivative valuation adjustments
