Monday Outlook: OTC Clearing and QE Tapering


The shift to mandatory clearing for over-the-counter  transactions has included several significant dates on the way to full compliance for buyside customers in swaps markets. Today is one of the most important dates yet. Mandatory clearing for category 2 firms begins today. Category 2 includes private funds, non-swap dealer banks and commodity pools. The mandate for swap dealers began on March 11, and the mandate for pension funds and any other firm not fitting in the first two categories begins September 9. According to the Financial Times, about 500 firms qualify as category 2, though many of them have already begun clearing, as our head of OTC told Bloomberg.

Here’s our look at the economic week ahead, and some other stories you may have missed…

Economic Calendar:


U.S. Wholesale Trade Report
10:00 AM ET

CME Group Ask the Analysts Panel: USDA Crop Reports

3:30 PM ET


USDA Crop Production Report
11:00 AM CT

USDA Supply/Demand Report
11:00 AM CT


Fed Balance Sheet
4:30 PM ET

Bank of Japan Minutes
7:50 PM ET


US:Industrial Production
9:15 AM ET

See our full economic release calendar here.



Deutsche Bank is opening a 200 ton gold storage facility in Singapore (Reuters)

Emerging market currencies weakened on anticipation of the Fed’s QE tapering (Futures)

Why the Fed doesn’t like the word “tapering.” (Real Time Economics)

Fed tapering concern has hit the Indian Rupee (Financial Times)

A map of the history of the Fed’s balance sheet (Sober Look)

The IMF details how its Greek bailout could have been better (Bloomberg, Economist Meg)

The Japan national soccer team qualified for the World Cup, and gave business a boost. (Bloomberg)

The latest farm economy observations from the Federal Reserve (Farm Policy)

Which country’s stock market leads the way in growth this year? (Bespoke)


Tweets of the Week



Anita Liskey is the managing director of corporate marketing and communications at CME Group.

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