New York Chapter
Event Re-Cap: Rate Hedging in a Dodd-Frank World
On June 12th Citigroup hosted a PRMIA NY Chapter event entitled "Rate Hedging in a Dodd Frank World". Over 100 registered PRMIA members were treated to a lively discussion with between 8 Panelists representing hedgers and providers. Hedger panel covered insurance (Jason Manske of MetLife), pensions (Scott Peng of SECOR), banks (Ethan Heisler of Citi) and money managers (David Sayles of Blackrock) while the provider panel covered market makers (Roland Wikstrom of Citi), Swap Execution Facilities (Jon Williams of Tradeweb), Clearing Houses (Sean Tully of CME) and Futures Clearing Merchants (Mariam Raji Citi).
Introductory remarks by each speaker set the stage as all spoke about significant costs and challenges of the new regime. Beyond these commonalities, the conversation ranged widely, in part reflecting the wide range of new participants on the provider side. Areas of particular focus included trading liquidity challenges, cash liquidity challenges linked to variation margin, and the higher hurdle for employing derivatives for risk reduction in light of new risks and costs. Finally, the hedgers spoke about the challenges in socializing the consequences of the new regime with their companies and clients.