Introduction to Swaps

In this section

• Overview of the Swap Market
  The main participants, uses, structure, and risks of the OTC swap market in Canada and globally.
• What Is a Swap? Key Concepts, Examples, and Practical Considerations
  Explore the fundamental nature of swaps, including how they work, why they matter, and how market participants utilize them for managing risk and customizing exposure.
• Role of the Swap Dealer in Derivatives Markets
  A comprehensive exploration of how swap dealers function as market makers for swaps, manage counterparty risks, and operate within Canadian regulations under CIRO guidelines.
• History of Swaps
  How swaps developed from early currency and interest-rate deals into a major OTC market shaped by post-2008 reforms.
• OTC Derivatives Market Reform
  Why post-2008 reform focused on transparency, clearing, collateral, and conduct in OTC derivatives markets.
• CIRO and CSA Requirements for Swap Transactions
  The Canadian trade-reporting, clearing, conduct, and margin framework that applies to swap transactions.
• Bilateral vs Cleared Swaps
  Explore how bilateral and cleared swaps differ in terms of risk, regulation, customization, and practical usage, focusing on Canadian markets under CIRO guidelines.
• Sustainability-Linked Swaps and ESG KPIs
  How swap pricing can be tied to measurable sustainability targets and why verification and disclosure matter.
• Cross-Border Considerations for Swap Transactions
  Explore the complexities of cross-border swaps, addressing extraterritorial regulations, clearing mandates, margin requirements, and global compliance considerations.