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ESMA Adds Second-Level Reporting Validation

By Helen Bartholomew
April 27, 2015, IFR

The European Securities & Markets Authority has introduced an additional layer of validation requirements for registered trade repositories to ensure the completeness of data submitted on swap transactions under the European Markets Infrastructure Regulation.

As part of a newly published question and answer paper relating to implementation of EMIR, Europe’s key swaps market regulator confirmed a new two-step validation process to ensure reporting is performed according to the new regime and in line with rules set out in the technical standards.

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Banks Struggle to Make Strategy Calls as Rules Pile Up

By Duncan Wood
April 27, 2015, Risk

Isda AGM: Interaction between some rules “very, very convex”, says Deutsche exec.

Overlapping rules are making it difficult for banks to work out what businesses they want to be in, and how to price their products and services, dealers complained at last week’s annual meeting of the International Swaps and Derivatives Association. The new rules often interact, which can magnify or mitigate the impact of any action, they said.

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End-Users Face Rising Swaps Costs

By Helen Bartholomew
April 25, 2015, IFR

Derivatives end-users may have won the battle in securing exemptions from many new rules forcing central clearing and exchange-like execution of swaps transactions, but they face reduced liquidity and rising costs as a result of this sweeping overhaul of the US$691trn over-the-counter derivatives markets, alongside new rules requiring banks to hold more capital against those trades.

“End-users don’t bring systemic risk and regulators need to be pragmatic about that,” said Derek West, senior director for derivatives at Canada’s key securities regulator, Autorite des Marches Financiers, speaking at ISDA’s AGM in Montreal.

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ISDA Urges Action on Global Harmony

By Helen Bartholomew
April 25, 2015, IFR

Derivatives professionals gathered in Montreal, Canada last week for ISDA’s 30th Annual General Meeting, where cross-border harmonisation topped the agenda amid myriad issues still weighing on the US$691trn over-the-counter swaps market.

Almost six years on from the G20 agreement struck in 2009 by global leaders in Pittsburgh, which sought to eliminate systemic risk by forcing swaps to be centrally cleared, reported to registered data repositories, and ultimately traded in an exchange-like electronic environment, industry participants have become frustrated with the lack of global consistency and the often haphazard outcomes that a fragmented approach has delivered.

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CFTC Fine-Tunes Rules Covering Swap Trading Venues

By Katy Burne and Andrew Ackerman
April 24, 2015, The Wall Street Journal

A top U.S. derivatives regulator unveiled a package of modest regulatory amendments designed to bolster new trading platforms for swaps, including steps that would give them greater flexibility in how they handle clerical errors and confirm trades.

The changes, detailed by Commodity Futures Trading Commission Chairman Timothy Massad at an industry conference in Montreal, are small adjustments aimed at “fine-tuning” the agency’s rules for the platforms, Mr. Massad said in a keynote speech at the International Swaps and Derivatives Association’s annual general meeting.

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ISDA AGM: CFTC Addresses Trading Abberations with No-Action Letters

By Gabriel Suprise
April 23, 2015, GlobalCapital

The Commodity Futures Trading Commission has issued no-action letters to address trade complications surrounding clerical error trades and has extended no-action relief for SEF execution confirmations.

On April 22, the CFTC issued two no¬action relief letters for swap trading on swap execution facilities and in designated contract markets.

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Massad: SEFS Fear Retaliation if They End Name Give-Up

By Peter Madigan
April 23, 2015, Risk

Isda AGM: CFTC chair is “very concerned” by claims that firms are being shut out of Sefs.

A seemingly trivial stand-off over the disclosure of counterparty names may threaten one of the pillars of US swap trading rules – the provision of impartial access – the head of the US Commodity Futures Trading Commission (CFTC) has said.

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CFTC May Need to ‘Step In’ to End MAT Drought – Reinhart

By Duncan Wood
April 22, 2015, Risk

Pimco derivatives counsel endorses review of Sef-expansion rules.

The US Commodity Futures Trading Commission (CFTC) may need to take “a greater role” in extending the list of swaps required to trade on new platforms, one of its commissioner’s top staffers has warned – a response to a 13-month drought in requests from the swap execution facilities (Sefs) themselves.

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Swaps Leaders Fear Aggregated Rule Impact

April 22, 2015, IFR

A deluge of regulatory changes aimed at reducing systemic risk and ending too-big-to-fail across financial markets has left buy and sell-side participants struggling to make business decisions as they digest the impact of the crippling capital regime and a slew of corporate governance and conduct changes.

Speaking on a panel at ISDA’s AGM in Montreal today, fixed income business heads called for greater clarity over new rules as they prepare for implementation of additional requirements that are set to take effect over the coming years.

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Global Swaps Markets Continue to Fragment – ISDA

By Cian Burke
April 22, 2015, FOW

Euro IRS traded between European dealers has increased in the past two years.

Global derivatives markets are continuing to fragment along geographical lines due to different regional regulations, according to new research by trade body the International Swaps and Derivatives Association (Isda). 

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