LPFMI and the Law – PREP. – CCPs for OTC Derivatives: the Foundations of the Legal and Regulatory Framework

WEBINAR INFORMATION
In June 2020, we welcomed Prof. Dan Awrey (Cornell) to the Liquidity Project Financial Market Infrastructure (LPFMI) conversation in a panel discussion on the implications of the law on CCPs for OTC derivatives with Robert Steigerwald (Chicago Fed). We have now the pleasure to further explore the legal and regulatory framework that applies to CCPs for OTC derivatives with Dan. More specifically, we will be organizing two webinars in which we discuss the economic and legal foundations of OTC derivatives markets and how these foundations relate to the legal and regulatory framework for central clearing through CCPs. In the first session, we will focus on the papers mentioned below and discuss any questions that we may have for Dan. In the second session, we will discuss the suggested readings in more depth with Dan himself and attendees shall have the opportunity to ask questions. Evariest Callens and Andrew Medeiros will organize the two seminars.

==> All papers are saved on dropbox at the below address. Just inquire access via dropbox at gerhardt@kalterherberg.com or click the links below – https://www.dropbox.com/home/Liquidity%20Project%20FMI/FMI_Research_%26_resources/YSI_webinar_papers/AWREY_Dan_webinar_series_papers

DISCUSSED PAPERS by Prof. Dan Awrey (Cornell)
The Mechanisms of Derivatives Market Efficiency https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2660939
Split Derivatives: Inside the World’s Most Misunderstood Contract https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3229916

REQUIRED FURTHER READING FOR BETTER UNDERSTANDING
The Problematic Case of Clearinghouses in Complex Markets by Yesha Yadav, https://ssrn.com/abstract=2006452
The Tenuous Case for Derivatives Clearinghouses by Adam Levitin https://ssrn.com/abstract=2119249

Bio Prof. Dan Awrey (Cornell)
https://www.lawschool.cornell.edu/faculty/bio_daniel_awrey.cfm

LPFMI INFORMATION
As some of you know, LPFMI is concerning itself around liquidity questions in financial market infrastructure (FMI) and is therefore open to all questions regarding
i. Liquidity problems at FMIs – this is the core of this project
ii. Liquidity problems in the financial system – this could be the next LP focus
iii. FMI problems in general – this includes innovation such as blockchain / DLT

Should you want to learn more about LPFMI, check out the links below for our initiation presentation from Jun. 2019. There were also Q&A webinars on the presentation, you can check out as well or reach out to any of us at LPFMI. Come join us!

LPFMI EVENTS OUTLOOK
The above mini webinar series will be part of a broader LPFMI Fall 2020 curriculum. You can find an overview (date 04. Oct. 2020 subject to updates) at https://drive.google.com/file/d/10Hgj3S9Oh-k29eEypaIv6MhSkOHJWgAu/view?usp=sharing Come join us as well for the other webinar series!

LPFMI and the Law (con't)
• DEBRIEF – CCPs for OTC Derivatives: the Foundations of the Legal and Regulatory Framework with Dan Awrey (Cornell)
• Uncleared margining regulation with Poseidon Retsinas (HedgeLegal)

LPFMI and Economic Innovation
• Introduction to Stablecoins– Theory, Structures, Use Cases
• Cross Border Payments and Blockchain
• FX Past, Proposed and Missing Innovation with Dr. Robert Hofmeister (ECB)

LPFMI and Economic Development
• CCP role in Frontier Countries with CCP expert

LPFMI @ YSI Virtual Plenary
• LPFMI events 6. – 15. Nov. 2020 online to be confirmed soon

Earmarked F2F conferences – to be confirmed
• LPFMI along BuBa/ECB/FRBC CCP conference 1. ‐ 4. Mar. 2021 in Frankfurt, DE Europe
• FRBC annual OTCD/Clearing Symposium in Jul. 2021 in Chicago, IL USA

FURTHER LINKS
The liquidity project – Financial Market Infrastructure (LPFMI) introduction presentation Jun. 2019
https://drive.google.com/file/d/1sZDn62qfGq8TLvkSP9hKKJEISjkhLMjx/view
Liquidity Project Financial Market Infrastructure Q&A
Video: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/video.mp4
Audio: https://storage.googleapis.com/ysi-recordings/5d3760970a199f1460d78b4c/audio.m4a