Viewpoint
Insights and opinions from key FIA staff
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Viewpoint – Treasury clearing, portfolio margining and white whales
There are tales in literature and lore of protagonists who obsess over certain quests but who are never able to obtain their elusive capture. For King Arthur, it was the Holy Grail. For Ahab, it was Moby Dick. For Casey’s at bat, it was the homerun. And for me, it’s portfolio margining of cash and futures in the US Treasury market. With the recent mandate by the Securities and Exchange Commission (SEC) to clear certain treasuries and repos, this goal is again coming into focus.
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Viewpoint – Brokers and exchanges ramp up resources for retail traders
Retail trading is one of the fastest growing dimensions of the exchange-traded derivatives markets. This trend picked up speed during the pandemic, and it shows no signs of slowing down.
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Viewpoint – The long view on China’s markets
Both the global markets and China benefit from the opening of China's markets to the world. It makes these markets safer and more accessible to investors and hedgers wherever they may reside. This leads to a more resilient global economy and stable world, and that’s a win for everyone.
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Viewpoint – Will 2024 be another record year of trading activity?
Last year the number of futures and options traded on exchanges worldwide hit a record level of 137 billion contracts. It’s worth taking a moment to appreciate just much the industry has grown in the last few years. Last year’s trading volume was 64% higher than the year before, and more than double the total number of contracts that traded in 2021.
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Viewpoint – Reasons to be grateful
Collaborative efforts would not be possible if our members didn’t set aside their self-interests and eagerly dedicate their time to solving broader industry problems.
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Viewpoint – Trends to watch in APAC derivatives markets
It's impossible to sum up everything that’s going on across Asia, but a short list of hot trends that are most important in the region right now include the rise of global benchmarks in the region, the dominance of China commodities exchanges and the exponential growth of India.
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Viewpoint - Disincentivizing clearing: It’s déjà vu all over again
In the wake of Silicon Valley Bank’s failure, U.S. regulators announced in July a proposal that raise the amount of capital required for the clearing of over-the-counter (OTC) derivatives. This is a dangerous move that disincentivizes hedging among businesses, runs counter to reforms aimed at preventing government bailouts, and increases costs for consumers and businesses.
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Viewpoint - Top issues driving FIA's work in the second half of 2023
There will always be new disruptions and innovations in derivatives markets. It's important to reflect on the past, however, to remind ourselves of the core values that drive us forward as well as the areas where we can improve.
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Viewpoint – Why "price discovery" matters to everyone
There are many things that have changed about global derivatives trading over the decades, from the way our markets work to the products that are listed. But one thing that will never change is the critical importance of price discovery, writes FIA President and CEO Walt Lukken.
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Viewpoint - What farmers and airlines can teach us about risk management
In the wake of the SVB collapse, some believe more regulation is the answer. But a better topic of debate should be how to develop a culture of risk management at organizations that stretches from the boardroom to the mailroom, and protects businesses against shocks and disruptions.
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