The difficulty firms have understanding their exposure to their counterparties was one of the most serious problems highlighted during the financial crisis. It was demonstrated in dramatic fashion when Lehman Brothers collapsed in 2008 and it took market participants many months to understand their exposure to the bankrupt bank.
In the years since, regulations such as the Dodd-Frank Act in the US and the European Market Infrastructure Regulation in Europe have been developed to reduce counterpar
James talks about his trip to Chicago and some of the interesting topics that came up (including a look at disaster recovery demands). Then Anthony and James touch on ISDA's initial margin rules, with Phase 3 going live next year.Subscribe to Weekly Wrap emails