Front loading and Global SIFI: Difference between pages

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imported>Doug Williamson
(Mend link.)
 
imported>John Grout
(To record that FSB compiles lists)
 
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Front loading as applied to derivatives is a term that describes the obligation to clear centrally an [[OTC]] [[derivative instrument]] or contract that is applied retrospectively.
(G-SIFI).


It arises because there is a gap between the time that a [[CCP]] is authorised under [[EMIR]] and [[ESMA]]’s decision to mandate [[central clearing]] of certain derivatives. During the early implementation stages of EMIR and the clearing obligation it may not be known at the time of executing a derivative trade whether it ultimately will be subject to frontloading or not. 
A Global Systemically Important Financial Institution, failure of which would have global financial stability implications.


It is not known at the outset whether to price the transaction on the assumption that it will, or will not, be subject to central clearing during the life of the transaction.  
Lists G-SIFIs are published and maintained by the [[Financial Stability Board]] at http://www.financialstabilityboard.org/what-we-do/policy-development/systematically-important-financial-institutions-sifis/. The list is in two section - one for G-SIBs (Global Systemically Important Banks), compiled  with the [[BCBS]] and one for Global Systemically Important Insurers (G-SIIs), complied with after consultation with the [[IAIS]] and national supervisors.




==See also==
== See also ==
*[[Central clearing]]
* [[Systemically Important Financial Institution]]
*[[Central counterparty]] (CCP)
* [[G-SIB]]
*[[Derivative instrument]]
* [[BCBS]]
*[[EMIR]]
* [[IAIS]]
* [[European Securities and Markets Authority]]  (ESMA)
* [[Over the counter]]  (OTC)
 
 
==External link==
[http://regtechfs.com/clearing-and-present-danger-nasdaq-omxs-emir-ccp-authorisation/ Clear(ing) and present danger] ''www.regtechfs.com''
 
[[Category:Financial_products_and_markets]]

Revision as of 14:03, 14 January 2015

(G-SIFI).

A Global Systemically Important Financial Institution, failure of which would have global financial stability implications.

Lists G-SIFIs are published and maintained by the Financial Stability Board at http://www.financialstabilityboard.org/what-we-do/policy-development/systematically-important-financial-institutions-sifis/. The list is in two section - one for G-SIBs (Global Systemically Important Banks), compiled with the BCBS and one for Global Systemically Important Insurers (G-SIIs), complied with after consultation with the IAIS and national supervisors.


See also

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