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Banks Push for Delay to Introduction of Derivatives Rules - Sources

By Michelle Price
Published August 21, 2014 Reuters

The international banking industry has asked regulators for more time to implement derivatives rules that could add $800 billion to the global financial industry's cost of doing business, people familiar with the matter said.

The International Swaps and Derivatives Association (ISDA), which represents the over-the-counter derivatives market, has written to the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO), the global regulatory banking and securities bodies, requesting a delay to rules that aim to make trading derivatives safer, the people added.

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CDS Notional Drops by 30%

By Beth Shah
Published August 18, 2014 Global Capital 

ISDA reported that there was a 31% decrease in the notional cleared for CDS and 32% less executed on swap execution facilities, compared with the previous week. Rates saw an increase, with 11% more volume cleared, and 14% more executed on SEFs last week.

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ISDA Moves to Protect Netted Capital During Bank Resolution

By Hazel Sheffield
Published August 14, 2014 Global Capital

The International Swaps and Derivatives Association has clarified the meaning of appropriate protection for netted capital under the Bank Recovery and Resolution Directive in response to queries by government officials in the European Union.

"The BRRD talks about a member state ensuring 'appropriate protection' but does not say what this means. The industry wants to be sure that the safeguards that the BRRD says should be implemented are in fact implemented effectively," Edward Murray, consultant at Allen & Overy

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ISDA Plays Down Speculative Activity

Published August 12, 2014 FOW

The International Swaps and Derivatives Association (ISDA) has published a report arguing that the amount of speculation in the over-the-counter (OTC) derivatives market is commonly misrepresented.

It makes the case that 65% of turnover activity is conducted as dealer-to-client and that "These participants, comprising non-dealer financial institutions and non-financial customers, use derivatives primarily to hedge risks and reduce volatility on their...

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ISDA: Dealer Derivs Activity Vital for Liquidity, Customer Hedging

By Beth Shah
Published August 11, 2014 Global Capital

Derivatives volumes pertaining to trades between reporting dealers is critical for market liquidity and the facilitation of client trades as it allows end users to put on risk-reducing and cost-effective hedges, according to a research study from the International Swaps and Derivatives Association.

According to the publicly available data published by the Bank of International Settlements, 35% of over-the-counter interest rate derivatives market turnover relates to dealer market-making and the hedging of customer transactions.

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Banco Espírito Santo Ruled Not to Be in Bankruptcy Event

By Ben Edwards
Published August 6, 2014 Wall Street Journal

A panel of the International Swaps and Derivatives Association Wednesday ruled that the Portuguese central bank's decision to break up Banco Espírito Santo BES.LB -40.30%won't trigger a payout on insurance-like contracts linked to the stricken lender's debt.

ISDA was asked late Monday to rule whether the Portuguese Central Bank's decision to split BES into two would qualify as a so-called bankruptcy credit event, meaning that any contracts on BES debt—known as credit default swaps—would be activated.

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One Trade a Day is Not a Liquid Market, ISDA Argues

By Tom Osborn
Published August 5, 2014 Risk

The first shots were fired yesterday in what promises to be a tense battle over the definition of liquidity in Europe's over-the-counter derivatives market. Only swaps that trade multiple times a day should be considered liquid, according to the International Swaps and Derivatives Association - regulators have implied even instruments that trade only once every other day might count.

The debate is important because liquidity plays a crucial role in the Markets in Financial Instruments Directive and its accompanying regulation (Mifid II and Mifir). Swaps deemed liquid will be forced onto one of three different categories of trading platform, and subjected to pre- and post-trade transparency requirements. 

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ISDA Asked New CDS Question on BES

By Christopher Whittall
Published August 5, 2014 IFR

The ISDA Determinations Committee has been asked a second question with regard to the fate of the US$900m of net notional CDS referencing embattled Portuguese lender Banco Espirito Santo.

The new general interest question, which appeared on the ISDA website late on Monday and will be ruled upon on Wednesday in a session starting at 12pm London time, asks whether a bankruptcy credit event has occurred with respect to BES.

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ISDA Declares Argentina in Default, Bonds Extend Losses

By Davide Seigliuzzo
Published August 1, 2014 Reuters

The International Swaps and Derivatives Association (ISDA) on Friday declared Argentina in default, which could trigger payments worth up to USD1bn on credit default swaps.

ISDA's determinations committee voted unanimously that a "failure to pay" event occurred on July 30, when Argentina missed a coupon payment on some restructured foreign-law bonds.

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Swaps Trading Between Europe and U.S. Declines

Published July 30, 2014 Markets Media

The International Swaps and Derivatives Association, the trade body for over-the-counter derivatives markets, said European dealers have been choosing not to trade with US dealers since swap execution facilities were introduced in the US.

Electronic trading platforms for swaps that provide access to US persons have been required to register as SEFs with US regulators and comply with new rules since October last year. On February 15 this year the first OTC interest rate swaps and credit index instruments became mandated for trading on SEFs in a process called made available to trade (MAT).

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