News

Current Articles | RSS Feed RSS Feed

Split Votes Revive Transparency Calls

By Helen Bartholomew
April 4, 2015, IFR

ISDA’s committee for determining whether borrowers have defaulted on their liabilities and ultimately whether credit default swap holders receive a payout went through its annual shake-up last week with only one change as Citadel replaces Eaton Vance for one of the five non-dealer voting roles.

Citadel’s arrival on the Credit Determinations Committee voting panel, from its previous role as consultative non-dealer (now taken by GSO Capital), comes at a time of intense scrutiny over the way in which credit events are decided, with some market participants calling for greater transparency in the closed-door decision-making process.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

ISDA Publishes New Derivatives Principles Calling for Changes to SEFs

By Elliott Holley
April 1, 2015, Banking Technology

The International Swaps and Derivatives Association has published a set of derivatives trading principles, as part of an effort to get regulators around the world to harmonise their efforts at derivatives market standardisation. The principles include a call for greater flexibility on US swap execution facilities.

ISDA’s paper, Path Forward for Centralized Execution of Swaps, accepts that the execution of standardised derivatives on an exchange or electronic trading platform was a key objective from the Group of 20 summit in 2009, and regulations have either been implemented or are being developed in several key jurisdictions. However, ISDA and its members are concerned about the potential for divergences in how these rules are applied in each jurisdiction, which could lead to market fragmentation, low trading liquidity, duplicative compliance requirements and increased risk.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

CDS Notionals, Trade Counts Continue to Climb Year on Year

By Beth Shah
March 30, 2015, GlobalCapital

The overall credit default swap notionals and trade counts that were reported to swap data repositories last week both increased by 15% compared to the same time last year, according to data from the International Swaps and Derivatives Association.

However, overall interest rate notionals were down 4%, while trade counts were up 13% compared to March 2014.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Rates, CDS Notionals Both Up Year-on-Year

By Beth Shah
March 25, 2015, GlobalCapital

Both the overall interest rate notionals and trades counts that were reported to swap data repositories last week increased by 22% and 35%, respectively, from the same time last year, according to data from the International Swaps and Derivatives Association.

Overall reported credit default swap notionals and trade counts were also up compared to March 2014, but only by 1% and 5%, respectively.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Comment: Regulators Must Remain Vigilant in Supervising Clearinghouses

By Mark Wetjen
March 18, 2015, Reuters

Last month the board of the International Organization of Securities Commissions (IOSCO) met in Seoul to discuss a number of agenda items, including safeguards for central counterparties, or CCPs.

IOSCO - as the name suggests - is the international forum and standard setter for market regulators such as the Commodity Futures Trading Commission (CFTC), upon which I serve, the Securities Exchange Commission, as well as comparable regulators around the globe.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Rise of Alternative OTC Dispute Venues

March 18, 2015, International Financial Law Review

Counterparties in the region are increasingly resorting to alternative venues to resolve disputes over complex financial products. 

Traditionally litigation has been the preferred form of dispute resolution in international finance. For a long time, the default option in derivatives contracts -- even involving counterparties in Asia -- has been either the London or New York courts. That changed in September 2013 when the International Swaps and Derivatives Association (ISDA) published the 2013 ISDA Arbitration Guide. The 2013 Guide set out an overview of the key feaures of arbitration. 

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

OTC Rates Trading Trends Shift Under New Regs

March 16, 2015, The Trade

Market participants traded more OTC interest rate derivatives in 2014, but in smaller sizes according to a review.

The International Swaps and Derivatives Association (ISDA) found that average daily notion volume fell from $588 billion in the first quarter of the year to $484.4 billion in the fourth quarter.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

ISDA Calls for Changes to Derivatives Transparency Rules

By James Rundle
March 5, 2015, Financial News

Derivative markets run the risk of a liquidity shortage if impending European regulations are not refined, a leading trade body has warned.

The Markets in Financial Instruments Directive II proposes widespread improvements to transparency, obliging prices and volumes for trades in multiple asset classes to be publicly reported, if the products are classified as liquid.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Negative Interest Rates Test Technology at European Banks

By Christopher Whittall, Anna Molin, and Christopher Bjork
March 4, 2015, The Wall Street Journal

Widespread negative interest rates, once only a theoretical possibility, have become a real-life problem for Europe’s financial system.

From Sweden to Spain, banks, brokers and other financial firms are grappling with technical and legal glitches thrown up by negative rates, forcing them to redesign computer systems, tear up spreadsheets and redraft legal contracts.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

ESMA Urged to Change 1-Trade-Per-Day Liquidity Definition

By John Bakie
March 5, 2015, The Trade

The European Securities and Markets Authority (ESMA) is being urged to recalibrate its proposed liquidity thresholds for some classes of derivative, after its December consultation paper appeared to indicate products with as few as one trade per day would be considered liquid.

In a media briefing today, Scott O’Malia, CEO of the International Swaps and Derivatives Association (ISDA) and a former Commodity Futures Trading Commissioner said proposals in MiFID II risk applying a “liquid instrument” term too broadly, which will ultimately harm trading in many less liquid products.

full article describe the image (subscription)

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