By StaffPublished March 10, 2014 The Trade
The introduction of true competition in derivatives clearing will be positive for the industry, despite a lengthy time-scale for implementation that has attracted criticism, according to Charlotte Crosswell, CEO of derivatives exchange NLX.
Among the many changes to numerous markets that are set to be introduced as part of MiFID II, open access to derivatives clearing has been one of the most controversial and hotly debated.
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By Vita MillersPublished March 10, 2014 Risk
When Nordic Growth Market decided to take on Nasdaq OMX in 2003 with a niche exchange for derivatives investments, it appears to have been on to something good. By offering banks a specialised service and the potential for market penetration for new entrants, the Nordic Derivatives Exchange (NDX) has risen to become market leader in Sweden and Finland, and has plans to make inroads into Norway's slowly recovering structured products market.
"We started the exchange at the request of issuers. At the time, it was a monopolistic situation - the OMX was the only one listing and trading in structured products and it was extremely costly to list," says Tommy Fransson, the Stockholm-based head of NDX. "There was room for NDX to establish itself as a niche player in structured products."
By Aruna ViswanathaPublished March 10, 2014 Reuters
Parts of a lawsuit filed by the Depository Trust & Clearing Corp against the top U.S. derivatives regulator in a fight over swaps data will be allowed to proceed, a U.S. federal judge ruled.
The DTCC sued the Commodity Futures Trading Commission over the way it allowed DTCC rivals CME Group Inc and IntercontinentalExchange to gather potentially lucrative swap trading data.
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By Joe RennisonPublished March 11, 2014 Risk
Russia and Ukraine's CDS spreads have jumped 20% as the political crisis continues, but neighbouring countries remain unaffected.
The territorial tug-of-war between Russia and Ukraine has forced up their perceived default risks by around 20%, but surrounding countries remain unaffected, according to credit default swap (CDS) spreads for the region's sovereigns.
By Paul J. DaviesPublished March 10, 2014 Financial Times
Hong Kong’s market watchdog is boosting its corporate investigations staff by more than 10 per cent and bringing in litigators to speed up probes as it moves to improve its monitoring of company behaviour.
The steps are part of wider efforts to protect the integrity of the city’s markets against the influence of China and other offshore players, measures that have included the launch of a listing regime and the setting of precedents in court cases against offshore investors.
By Gina ChonPublished March 7, 2014 Financial Times
US Senators on Thursday pressed nominees for the Commodity Futures Trading Commission to be tough on enforcement over market manipulation and fraud.
The Senate Agriculture Committee heard from CFTC chairman nominee Timothy Massad and from two commissioner nominees before committee members vote on their posts in a few weeks.
By Liz SaleckaPublished March 7, 2014 Financial News
The reporting of derivative trades under the European Market Infrastructure Regulation is proving anything but a clear-cut exercise and, as issues persist, many industry players believe it could take up to six months longer to get things right.
By Scott PattersonPublished March 7, 2014 Wall Street Journal
A trio of math and finance professors has created a computerized program to test whether regulators listen to the public when crafting new regulations. The simple answer: Yes.
How they reach that conclusion is far less straightforward. The program, which the professors dubbed “RegRank” in a January paper, uses an automated “machine-learning” method—geekspeak for artificial intelligence—to search through thousands of comment letters from the public and the regulations themselves.
By Paloma MigonePublished March 7, 2014 The Trade
New interest rate swap (IRS) futures are failing to gain traction despite the lower margin incentive, according to Serge Marston, managing director, eCommerce sales, at Deutsche Bank.
Although a number of exchanges are now offering swap futures – which benefit from trading on exchanges and behave like an OTC instrument – the products weren’t attracting widespread demand, Marston told the FIX EMEA conference in London.
By StaffPublished March 7, 2014 BBC
Deutsche Bank, JPMorgan, UBS and the Dublin-based Depfa bank had appealed against a December 2012 verdict that ordered the seizure of 89m euros (£74m) and fines of 1m euros each.
Nine bank employees had suspended prison sentences of up to eight months quashed.
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