C&S

Financial markets

Clearing and settlement

Dermot Turing is a regular speaker and writer on financial markets infrastructure issues, in particular problems concerning failed banks and risk management. While at Clifford Chance, he advised on the failures of Lehman Brothers, Northern Rock, Barings and BCCI. During 2016-17 he was an independent expert member of the European Post Trade Forum, and co-edited its report.

Recent Publications

Clearing and Settlement (Second Edition, Bloomsbury Professional, 2016). This textbook covers all legal aspects of financial market infrastructures. For review, see Markus Heidinger, Journal of International Banking Law and Regulation (2017), vol 33, No.1, pp 34-35.

…exactly what practitioners need to find orientation among the tsunami of regulatory developments of recent years…For the law and regulation of clearing and settlement, Turing has undertaken this tremendous task. — Markus Heidinger, Wolf Theiss, Vienna * Journal of International Banking Law and Regulation, Volume 33, Issue 1 *

‘Untying Interconnectedness: Topology, Stability and the Post-crisis Reforms’ (2020). ‘Interconnectedness’ was considered to be a cause of the 2008 financial crisis, stimulating a number of studies into the topology of financial markets. Yet the analysis of instability within networks has tended to focus on a type of ‘contagion’ which imagines serial insolvencies, with non-performance of due obligations causing solvency issues for connected institutions. A more realistic assessment of the 2008 crisis was that it was due to a drying-up of available cash. A taxonomy of contagion is proposed, and the illiquidity model of contagion is then analyzed with reference to the observed core-periphery structure of financial market networks. Finally, the post-crisis reforms are judged against the view of ‘interconnectedness’ which emerges.

‘Central counterparties: magic relighting candles?’ (2019). Journal of Financial Market Infrastructures, vol 8, no 1, pp 27-49. In this paper, the rules of selected major CCPs (LCH, CME, Eurex and ICE) are reviewed for both their end-of-waterfall procedures and the rights granted to clearing members in end-of-waterfall  scenarios. These are compared against the arrangements for and resolution policies of CCPs.

‘The Morning After – the impact on collateral supply after a major default’ (2018) (with Manmohan Singh). IMF Working Paper No. 18/228. Ten years after the Lehman Brothers default, the paper looks in particular at the effect of the Liquidity Coverage Ratio on market participants in a post-default scenario.

‘Central counterparty resolution: an unresolved problem’ (2018) Journal of Financial Market Infrastructures, vol 6, no 2/3, pp 187-206 (with Manmohan Singh); substantially replicated as IMF Working Paper 18/65

‘What do we do with troubled CCPs?’ (2017) Vanderbilt Law Review En Banc, vol 70, pp 279-282

‘The Extra-Territorial Regulation of Clearinghouses’ (2016) Journal of Financial Regulation, vol 2, no 1, pp 21–55 (with Yesha Yadav); available here.

Selected speaking engagements

Untying the Gordian Knot: Interconnectedness, stability and the post-crisis reforms
10th Emerging Markets Finance Conference, Mumbai, India (December 2019)

9th Emerging Markets Finance Conference, 2018, The Trident, BKC, Bombay, India (December 2018)

AFME Post-Trade Conference (May 2018)

IMF, Washington, DC (October 2017)

Financial Market Infrastructure Conference, De Nederlandsche Bank, Amsterdam (June 2017)