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From Safety to Profit Tool: Collateral Optimization

Interview with Judson Baker, Senior Vice President and Product Manager of Derivatives at Northern Trust.

The past year and a half has seen collateral management evolve from a back-office concern, to a middle and front-office operation. The Dodd-Frank Act, devised as a solution to the financial crisis, has had a profound effect on the market, which many are still learning to manage effectively. The threat of new uncleared margin rules (taking ef

Weapons of Mass Financial Destruction (WMFD)

By:

Bill Holter

Global Research, January 29, 2016

Every once in a while it is a good thing to review something we already know and have known for quite a while. What we’re talking about are derivatives and the very basics of how they work… or not.

We have seen massive volatility since the Fed raised rates last month.

The humor (tragedy), admitted to yesterday by the Fed, the 4th quarter saw slowing economies all over the world and “Nobody Really Knows Anyt

The dilemma of the long stock position is unending downside risk. This is where options serve their best purpose: as tools for portfolio management. Rather than use only as speculative and high-risk market plays, strategies like the synthetic short stock position protect against downside loss and, unlike the better-known covered call, offer a practical alternative to selling and taking profits. This position combines a long put and a short call. In a pure synthetic short, no stock would be held

Quad-Party Clearing – a buy-side focused clearing model – was widely perceived as an innovative solution for the clearing obligation under EMIR (European Market Infrastructure Regulation). The benefits for buy-side firms include efficiency, cost and risk reduction.

However there’s a growing concern that these are outweighed by cost and risk factors of market infrastructure providers and sell-side institutions. For example, many experts anticipate a collateral crunch as a consequence of clearing o

Interview with Houman B. Shadab, Associate Professor of Law at New York Law School

Houman B. Shadab is an Associate Professor of Law at New York Law School. He is an internationally recognized expert in financial law and regulation whose research focuses on hedge funds, derivatives, and securitization. Professor Shadab is a director of the Center on Financial Services Law and the Editor-in-Chief of the Journal of Taxation and Regulation of Financial Institutions.

marcus evans had the privilege to