News

Current Articles | RSS Feed RSS Feed

Comment: Debt Market Makeovers

By Lisa Abramowicz
January 13, 2016, Bloomberg View

Perhaps antiquated markets must truly wither before they can be revived in an electronic era.

So it seems with two opaque over-the-counter debt markets: leveraged loans and derivatives contracts tied to individual companies’ creditworthiness.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Basel Committee Softens New Rules on Bank Capital

By Laura Noonan, Martin Arnold, and Caroline Binham
January 14, 2016, Financial Times

Global banking supervisors have softened new rules forcing investment banks to hold much more capital against their trading books, after heavy lobbying from the banking industry.

The rules are designed to discourage investment banks from taking too much risk on to their own books as they buy and sell securities from clients, with the ultimate aim of reducing the chances of a bank collapsing.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

ISDA to Give Buy-Side a Bigger Say

By James Rundle
January 13, 2016, Financial News

An influential voice in over-the-counter derivatives is expanding its board to reflect the increasingly prominent role that non-bank firms have in this market.

The International Swaps and Derivatives Association said it is to increase the size of its board of directors from 26 to 30 people, following elections to be held in the first quarter of 2016.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Comment: ISDA Overhaul Is a Cause for New Year Cheer

By Dan Alderson
January 12, 2016, GlobalCapital

The International Swaps and Derivatives Association said on Monday that it will improve the rules governing members of its Credit Derivatives Determinations Committee, to strength the process for deciding whether credit events have occurred. 

The changes, which will come in from mid-February, mean that DC members firms will be explicity required to have written procedures in place on the identity of their DC decision makers, record keeping, and management of potential conflicts of interest. 

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Banks Unyielding in Contract Talks on Clearing

By Frederico Mollet
January 12, 2016, Risk

As mandatory clearing of over-the-counter derivatives approaches, European buy-side firms are locked in contract negotiations that threaten to drastically alter their relationship with bank clearing members. Lawyers warn that buy-siders that are late in the process of agreeing terms with clearing members could end up being forced to accept unfavorable terms.

This is despite the creation of standardized documentation for client clearing under an initiative led by the International Swaps and Derivatives Association and the Futures and Options Association (FOA). That work brought into being in 2013 a standard addendum to either an ISDA master agreement or an FOA futures agreement. However, despite the initiative, clearing contracts in Europe are turning out to be less standardized than had been hoped for.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

ISDA Boosts Board to Tackle 2016 Challenges

By Cian Burke
January 13, 2016, FOW

Trade body the International Swaps and Derivatives Association (ISDA) said on Tuesday it had voted to increase the size of its board to 30 members from 26 to reflect the changing diversity of the firms it represents.

The trady body, which represents some of the world's largest banks, said the move would broaden the perspective and scope of the board by electing members that represent the growing diversity of the market.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

ISDA Tightens Up Rules for Determining Credit Events

By Dan Alderson
January 11, 2016, GlobalCapital

The International Swaps and Derivatives Association will tighten up the rules governing members of its Credit Derivatives Determinations Committee as it looks to strengthen the process of deciding whether credit events have occurred.

ISDA said that the changes, which will come in from mid-February, aim to reinforce controls and procedures by setting globally consistent minimum standards on the internal conduct of DC member firms.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Credit Swaps Panel Adopts Rules to Mitigate Conflict of Interest

By Sridhar Natarajan 
January 11, 2016, Bloomberg Business

A derivatives industry group adopted new rules to mitigate conflicts of interest on a panel of banks and asset managers that determines when traders are paid on debt insurance.

The International Swaps & Derivatives Association will begin requiring its so-called determinations committees to have written policies or procedures concerning the identity of decision makers, identification and management of potential conflicts of interest and record keeping as of next month, according to a statement.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Moody's Gives Nod to Systemic Role of Clearing Houses

January 7, 2016, Financial Times

Moody’s released its new methodology for rating clearing houses on Thursday, a move that underscores the growing systemic importance of an industry at the heart of an overhauled derivatives market.

Clearing houses stand between two counterparties to a trade, collecting collateral to cover losses should either one default in a bid to reduce credit risk, reports Joe Rennison, capital markets reporter in New York.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

The Never-Ending Journey: Banks Braced for Next Volley of Regs

By Graham Bippart
January 4, 2016, GlobalCapital

Europe, despite the vast amount of post-crisis regulation it finalized in 2015, is still exhaustingly distant from finishing the job.

Even before the Basel Committee on Banking Supervision had finished the rules it considers to be major pieces of the Basel III puzzle, the committee has already flagged the European Union as significantly non-compliant in some key areas. 

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails
All Posts