Futures/Swaps: In Search of Difference

skyFollowing to some Exchanges movements switch their products from Swaps to Futures, the cacophony of futurisation is getting too loud to ignore.
Futurization: Dodd-Frank Drives Swaps-to-Futures Migration

A) Here is the comparison of two products:

 Regulatory
Requirement

Margin Requirement  Blocks  Default
Management
 
Contract
Flexibility 
Execution  Reporting 
Swaps  High   5-day VaR High Threshold  Complex Positions Liquidation Custom: Rate/Tenor  Designated Trading Platform    Real-time

 Futures

 Low 1-day VaR 

 Low Threshold

Simple Liquidation  Standard or Block Trades  Open Access

10 mins. delay 









B) Eris Exchange produced a very comprehensive document to compare the cash flow movement in order to prove the two products are identical: Details
 

So, the question needs to be answered:

What’s the difference between the Swaps and Futures, if there is any?
- If there is no difference, why the margin treatment is different?
- If there is difference, what is that?

The ball is now on the regulator’s hand, although the question sounds simple, the answer is not that straight forward. To avoid massive SWAPS exodus and cause the SWAP rules collapse, the regulators need to come out with an innovative answer.

BBA plans phase out some LIBOR Rates

The BBA plans to cease the compilation and publication of LIBOR for certain currencies and tenors for which there is insufficient trade data to corroborate submissions, immediately engaging in consultation with users and submitters to  plan and implement a phased removal of these rates.
http://www.bbalibor.com/news-releases/bba-reports-findings-of-libor-reform-consultation

Watch out the timetable:
http://bba.bladonmore.com/download/8425