The New World

The financial markets have undergone fundamental changes since the collapse of Lehman in 2008. Perhaps the most profound change is to be found in valuations including new methods how to discount cash flows and estimate credit exposures. Assumptions about a common risk-free discount rate is a thing of the past, as well as to manage a portfolio of assets individually without regard for the rest of the company's exposure. In addition, the authorities also introduced new regulations with the aim of reducing systemic risk by imposing tougher capital requirements, liquidity reserves, posting security for derivative transactions - bilaterally or through central clearing and an ever increasing reporting requirements. New regulations requires systems and business development. home img

Valuations

TMS valuation tools exists as standard versions depending on investment focus and portfolio complexity or can be customized to the exact needs of an investment manager providing a cost efficient system solution. All TMS tools are available as window or mac applications and via Internet.

CASH Management

Through TMS portals you will have up-to-date and accurate valuation of your portfolio and trades on demand. By using TMS online platform you can add services like in depth analysis, efficiency calculations for portfolios and for due diligence. TMS provides basic risk analysis as standard and additional analysis on demand.

Reporting

TMS provides standard reporting formats and possibilities to customize report functions to daily, monthly or ad hoc reports. TMS provides on demand services for longer and more in depth reporting, providing analysis for auditing and tax reporting.

TMS-Treasury Management Systems: Valuations, Performance Tracking, and Risk

TMS provides a platform with state of the art calculators using the latest market standards to provide correct evaluations.

Using the most frequent market data available allows for immediate and speedy observations on valuation and risk.

TMS trade logs and trade history database allows for various ways of monitoring cash flows and portfolio events and provides tools to plan future events to ensure an efficient portfolio management.



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Consulting

Verare performs analysis of financial exposures, portfolios, business proposals and strategic analysis of financing strategies and policy evaluation.

EMIR & BASEL: How does the new regulations affect the management of the derivatives portfolios and what products supports an efficient management of liquidity reserves under Basel III?

CLEARING or CSA: exempt from EMIR obligations - analysis of the cost benefits to voluntarily clear or provide collateral bilaterally.

news


Clearing obligation for category 3

The EU Commission has adopted a draft amended Delegated Regulation under EMIR on the deadline...

The EU Commission has adopted a draft amended Delegated Regulation under EMIR on the deadline for compliance with the clearing obligation for Category 3 counterparties, i.e. financials with derivatives positions under €8bn.

The clearing obligation for Category 3 is proposed to start on 21 June -19, for EUR, GBP, JPY, USD as well as NOK, PLN and SEK. Originally the dates were June -17 for G4 currencies and Feb -18 for SEK etc.

This change was proposed by Esma, so no real news.

Now Parliament/Council have non-objection period before the rule enters into force.

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Invitation

PDF Invitation - April 5th.
Nasdaq invites you to an informative meeting regarding how the market is affected by...

PDF Invitation - April 5th.
Nasdaq invites you to an informative meeting regarding how the market is affected by the current monetary policy and the new regulations.

The first steps to mandatory clearing and collateralization of non-cleared derivatives under EMIR have been taken.

How will this and the current monetary policies affect the market?

In the PDF above is a brief description and details for how to attend.

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EMIR UPDATE!

We’ve been raising attention to the fact that the industry faces a real challenge to meet the March 1 deadline...

“We’ve been raising attention to the fact that the industry faces a real challenge to meet the March 1 deadline,” said Scott O’Malia, chief executive of the International Swaps and Derivatives Association. “As it stands, it looks likely that many derivatives users will be unable to access the derivatives markets from March 1, unless there’s some form of regulatory action.”
Source: Bloomberg News

Requirements to post variable margin for certain market participants March 1, 2017
Preparations for the requirement under EMIR to provide collateral between counterparties by March 1, 2017 is in full swing. Many have existing ISDA agreements but most are not compliant with EMIR and the RTS (Regulatory Technical Standards), which entered into force in January 2017. In parallel, EMIR also have rules to post initial collateral although the bulk of it will become compulsory by 2020.

  • Verare sees several issues with this.
    • Under the new agreements, a different evaluation method will be used and it will in most cases affect the price of the existing business. This will create a “regulatory cost” which counterparties will want to be compensated for.

  • Do I have to sign a new ISDA?
    • Can I use central clearing to continue dealing? Or let the other party take out their costs in the transaction price. ... The price may be considerably more expensive if one do not provide collateral or agree on clearing. Verare have created different analysis models to estimate the difference between continuing as before or to post collateral under a CSA or use centralized clearing.

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    About

    Experience: Verare AB has extensive experience in capital markets from both the buy and sell side, a deep understanding of how the market is organized, how it works and what drives it.

    Knowledge: Verare AB has a broad mathematical knowledge and knowledge of how the new regulations that have come and who will come in the future and can therefore offer an analysis to see how cost-efficient the management is and can be.

    Clients: Verare AB has worked with key regulators, stock exchanges, banks, companies and accounting firms and has a very good understanding of what can be done and how to organize their trade as cost effectively as possible.

    Independent: Verare AB is completely independent, not tied to any bank, clearing institution or other financial oganisations, and consult entirely on the client's best.

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    Contact Us

    Our office is in Sweden. Please, send us a message if you want to be contacted by a representative.

    Birger Jarlsg 57A, plan 10, 113 56 Stockholm, Sweden

    +46 730 489 756

    info@verare.se