Derivatives Clearing Organizations
Since The Wall Street Reform and Consumer Protection Act(Dodd-Frank) was passed in 2010, tremendous changes have been taking place in US and other financial centers. One of the major changes has been that most vanilla Over the Counter (OTC) derivatives have to be transacted through clearing entities. This development has significant risk management and compliance implications for financial institutions as well as for any corporation transacting derivatives. Understanding the mechanics and risks of Derivatives Clearing Organizations as well as how they are regulated is very important for any derivatives market participant. This two day course will consist of an interactive lecture and cases. Additionally, relevant articles highlighting recent trends in risk management will also be used for discussions.
Front, middle, and back office professionals, regulators, risk managers, auditors, and compliance officers.
After completing this module, you'll be able to:
- Describe the role of a Derivatives Clearing Organization (DCO)
- Identify the DCO's core principles and how they are applied
- Discuss best practices expected at a DCO
- Evaluate key requirements for good risk management at a DCO
I. Structure and Responsibilities of a DCO
III. Clearing Requirements for Swaps
Case: How does ICE clear credit default swaps?
II. DCO Core Principals
Articles for discussion
IV. Potential Risks of DCOs
CPE Credits 14
No advance preparation required.
This course has no prerequisites.