Risk mitigation for European sovereign debt
EFSF: European Sovereign Bond Protection Facility launched goo.gl/lSrd4— Alea (@Alea_) February 17, 2012
Alea has embedded Twitter content very nicely on his Tumblr. I haven’t set it up properly here. Go have a look at Alea’s tumblr if you’re curious.
Risk mitigation for OTC Derivatives
Here’s something from the BIS (Bank for International Settlements), released on 24 January 2012:
Report on OTC derivatives data reporting and aggregation requirements, CPSS Publications No. 100.
CPSS = Committee on Payment and Settlement Systems.
I like settlements and clearing, as it is something I know about, more so than economic theory (that is a story for another day…).
Anyway, this is the final report on the OTC derivatives data that should be collected, stored and made available to all by trade repositories. It is part of the overall program by regulatory agencies, including the Financial Stability Board (FSB), to bring about OTC derivatives market reform.
Here’s a summary from the announcement (the entire 70+ page document is available for download, see link above):
By collecting such data centrally, [trade repositories] would provide authorities and the public with better and more timely information on OTC derivatives. This would make markets more transparent, help to prevent market abuse, and promote financial stability.
The report was expanded to elaborate on the description of possible options to address data gaps…and updated to reflect recent international developments in data reporting and aggregation requirements stemming from the Legal Entity Identifier (LEI)… in support of a request by the G20 at the Cannes Summit, to advance the development of a global LEI.
* Emphasis is mine.
The matter of LEI’s is interesting. At the moment, we have
- Bloomberg Open Symbology
- all the proprietary global financial security identifiers already extant e.g. ISIN, CUSIP, SEDOL
Don’t forget XBRL, extensible business reporting language, which is more of a framework than merely an identifier.
There is certainly a lot of activity promoting standardization. I would expect some sort of standardization of standards on the horizon, possibly after the Euro crisis is less of a crisis than it is now. I hope that will happen soon.