On June 24th this year, CFTC Chairman Giancarlo, Securities and Exchange Commission Chairman Jay Clayton, and the U.K.s Financial Conduct Authority Chief Executive Andrew Bailey issued a joint statement regarding their concerns in
credit derivatives markets.
Cyrus, which had sold
credit derivatives on SRAC's debt, then took steps to reduce the size of its possible payout.
A counterparty involved in some types of
credit derivatives arrangements makes a payment when certain events occur, Quarles said.
Keywords: Banking Sector;
Credit Derivatives; Credit Default Swaps; Bank Risk; Z-Score; Financial Credit Crisis.
"To launch these exchange-traded
credit derivatives, the exchanges needed licenses for data and index benchmarks.
How does Goldman Sachs's $1.96 trillion in maximum notional payouts for
credit derivatives relate to the $875 billion in gross fair values of all derivative liabilities?
It said that Deutsche Boerse and the Chicago Mercantile Exchange attempted to break into the
credit derivatives business between 2006 and 2009, but when they tried to obtain the necessary licences they were offered only "over-thecounter" trading rather than exchange trading.
It said Deutsche Boerse and the Chicago Mercantile Exchange attempted to break into the
credit derivatives business between 2006 and 2009, but when they tried to obtain the necessary licences they were offered only "over-the-counter" trading rather than exchange trading.
Financial data company Markit, the International Swaps and Derivatives Association (ISDA) and 13 banks were charged with blocking two exchanges from entering the
credit derivatives market in the last decade in breach of EU antitrust rules.
Or how about the report by Jonathan Well of Bloomberg, which addresses the question "How did JPMorgan's chief investment office, which manages deposits that the bank hasn't lent, go from being a conservatively run risk manager to a profit center speculating on higher-yielding assets such as
credit derivatives?" It was a transformation that recently caused the bank to lose $6 billion.
Deutsche Bank said in a statement that the report in the Financial Times was "wholly unfounded." According to the FT, three former Deutsche Bank employees told the US regulators, the SEC, that the bank had used improper accounting to misrepresent as much as $12 billion (8.4 billion euros) in losses on
credit derivatives during the financial crisis between 2007 and 2009.
The bank said it might generate another $700 million to $1.7 billion of losses from the
credit derivatives trades.
