The regulatory bodies operating within the territory of the United Kingdom play an important role in the financial dealings of the nation. There are a large number of regulatory bodies operating in the UK financial industry. The government of the nation thinks that the financial regulations have certain weaknesses which if rectified can strengthen the financial status of the country as whole. It has committed to replace the faulty regulations with a new regulatory framework. The clearing houses have a crucial part to play in the financial trading in the UK. The financiers and other finance professionals can attend the finance-related conferences to know more about how a clearing house minimizes the settlement risks in case of financial disputes by offering independent valuation of collaterals and by supervising the clearing firms’ credit worthiness.
The European Market Infrastructure Regulation (EMIR) which is one of the most prominent UK financial regulations has been introduced to minimize the counterparty risk involved in the OTC derivative markets. It also helps in improving the transparency within the financial markets. The European Market Infrastructure Regulation (EMIR) imposes the following requirements to address the risk of OTC trading:
- Clearing: According to EMIR, it is through central counterparties that the standardized derivative contracts need to be cleared. This should be done to bring down the risk in the financial system.
- Reporting: The OTC derivative contracts needs to be reported to the trade repositories.
- Margin and Capital: Clearing counterparty should possess permanent and separate initial and variation margins available in the form of liquid collateral.
The EMIR is committed to a G20 mandate that has brought the clearing houses to the forefront of reformation. The G20 desires to replace the derivatives market with the electronic trading venues by processing the deals through the clearing houses. Politicians want to minimize counterparty as well as operational risks put by the OTC derivatives markets. They want to do it by processing trading activities via clearing houses.
The European Market Infrastructure Regulation (EMIR) has brought on several reactions from the experts in the finance industry of the United Kingdom. Some finance experts believe that the cost of OTC deals will rise in the coming times. According to some specialists in the industry, with the prices of worthy collateral moving up because of the deficit of cash, collateral and non-cash, the banks and other financial institutions will be left with no choice but to charge the clients a good price for their balance sheet rental and collateral transformation and improvement.
Many conferences dealing with the current financial regulations are often held in the United Kingdom. If you want to acquire financial knowledge and how the banks and financial institutions work in the United Kingdom, you should attend these conferences. Many specialists with in-depth knowledge about financial regulations are invited to share their opinions in these conferences. They suggest about how to improve the financial status of a country and what the government can do to improve it. There are many websites that let you know about when and where these conferences are held. You can register on a reliable website to take part in a finance-related conference.
Do you want to acquire knowledge about financial regulations and the role of clearing houses in the finance industry of a country? If so, you can visit our website and attend the finance-related conferences.