Cornering the counterparty risk with Eurex
This week started with volatilities dropping to new lows, but thanks to the Irish banking crisis we’ve seen some action after all. Perhaps this turmoil on the green island will reignite the European debt crisis again, with returning panic and failing banks. Could save the year for a lot of market makers.
With the possibility of failing Irish banks in mind, the German derivative exchange Eurex has a remarkable timing. Coming Thursday, november 18th, they will host a workshop on their Wholesale Facilities in Amsterdam. To be more specific, they will focus on clearing over-the-counter transactions through their central counterparty system (CCP). The trend to clearing through CCP is unmistakably there, Eurex Clearing alone registered 650 million contracts so far.
In addition, some attention will be payed to changes in trading flexible contracts. And don’t underestimate the importance of chattering up with your competitors. With a few beers. Thurday after market close in NH Barbizon Palace, near Amsterdam Central Station. Contact Eurex for details and registration.
ireland. what a shthole.
If Irish banks won’t fail, another one will collapse anyway. Someday.
10:56 pm is a retard who cannot write or spell properly.
Could never imagine why anyone would like to trade with counterparty risk. What’s the joy of being long a lot of vega against a collapsing bank? End up with unnecessary stress imho
yeh, but he’s right, ireland is fcked!
@11:28 pm
Not all investment needs are met by listed products
with a csa in place the counterparty risk is not too high
Still awaiting the dutch OTC platform (TOM Optiver – Binck) were even small private investors can engage in the OTC market (if they realize that they are I don`t know)
lot of BS,
contracts traded at TOM are also guarateed by a ClearingHouse!
any news on all options?
Are TOM options guaranteed by “a clearinghouse” or central euronext clearing ? Just curious I know this platform is always negative biassed but I am really just interested how that technically works..who exactly is guaranteeing these trades ?
ABN (Fortis) acts as the CCP for TOM transactions. Most definitely Euronext is not involved since TOM was launched to compete with Euronext!
Wow. I didn’t know that the Take Out Machine was so versatile. And why did Liquid share their technology with Optiver?