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Banks' Pressure Stalls Opening of U.S. Derivatives Trading Platform

By Karen Brettell
Published August 27, 2012 Reuters

The first interdealer trading platform aimed at opening up credit derivatives markets to new competition has hit roadblocks due to resistance from some banks that dominate such trading, according to several people familiar with the situation.

Derivatives markets continue to revolve around the small group of dominant banks, and credit markets have become more - not less - concentrated since the 2008 global financial crisis.

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U.S. Bank Watchdogs to Adopt Liquidity, Margin Rules

By Douwe Miedema
Published August 27, 2012 Reuters

U.S. regulators will next week vote to adopt two major rules to reduce risks to banks, the Federal Reserve said, including a plan for them to hold enough easy-to-sell assets to survive a future financial crisis.

The regulators will also draw up rules for money that buyers and sellers need to set aside - known as margin - when trading swaps without the intervention of a clearing house, which acts like a middleman to make the deals safer.

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Calls Mount for US-EU Swaps Rules Recognition

By Anish Puaar
Published August 27, 2014 Financial News

The Committee on Capital Markets Regulation, a non-partisan group based in the US, made the call in a letter sent last week to Timothy Massad, chair of the Commodity Futures Trading Commission, and Michel Barnier, the European commissioner for internal market and services.

The group’s 35 members include Samara Cohen, a managing director in Goldman Sachs’ securities division; Blackrock vice chairman Barbara Novick; Bloomberg chief executive and president Daniel Doctoroff; and Kenneth Griffin, chief executive and president of Citadel.

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Regulators Tackle CCP Resolution

By Christopher Whittall, Mike Kentz
Published August 29, 2014 IFR

Six years on from the bankruptcy of Lehman Brothers, regulators have yet to draw up a framework to handle the collapse of a different breed of systemically important institutions that have become an integral part of financial markets: clearing houses for over-the-counter derivatives.

A central plank of the 2009 G-20 reforms aimed at bolstering the global financial system involved funnelling as much of the OTC derivatives market as possible through central counterparties.

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Second Asia Structured Product Multi-dealer Platform to Launch

By Justin Lee
Published August 26, 2014 Risk.net

Competition in the Asian structured product multi-dealer platform arena is set to increase with Swiss bank Vontobel planning to launch a platform in Asia similar to its Deritrade offering in Europe, according to a senior executive at the bank.

In Europe, Vontobel's multi-dealer platform has been in operation for two years and has five active product providers including itself, Deutsche Bank, Morgan Stanley, Societe Generale and UBS.

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U.S. Bank Liquidity Rule Said to Exclude Municipal Bonds

By Jesse Hamilton and William Selway
Published August 26, 2014 Bloomberg

Municipal bonds will be excluded from the group of easily sellable assets that banks can use to show they’re able to survive a credit crunch, according to a person familiar with the rule.

Regulators including the Federal Reserve are set to approve a final liquidity rule on Sept. 3. The most recent draft bars debt issued by states and municipalities from being listed as high-quality assets that could help sustain a bank through a 30-day squeeze, said the person, speaking on condition of anonymity because the process isn’t public.

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Deutsche Bank and Others Face Off with Esma Over Mifid II

By Yakob Peterseil
Published August 21, 2014 Risk

Banks should not be required to reveal their profits on structured products as regulators push for greater transparency, banks said in response to a consultation on the Markets in Financial Instruments Directive (Mifid II) adopted by the Council of the European Union earlier this year.

Reacting to a proposal by the European Securities and Markets Authority (Esma) that would require firms to disclose "mark ups" embedded in the price of financial instruments, some banks warned against forcing issuers to show their margins.

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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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CFTC Issues No-Action Relief on Confirmations of Uncleared Swap Transactions

Published August 20, 2014 Hedgeweek

The US Commodity Futures Trading Commission (CFTC) has issued a no-action letter providing swap execution facilities (SEFs) time-limited, conditional relief from certain data reporting and record-keeping requirements in relation to confirmations required for uncleared swap transactions.

The no-action relief provided will expire at midnight (EDT) on 30 September 2015.

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'Relentless’ Consultation Shows Rules Still on Rise

By Mark Cobley and Joe McGrath
Published August 18, 2014 Financial News

At almost one a week, watchdogs’ requests for input on new rules are landing on financiers’ desks faster than ever, Financial News has found.

With 47 consultation documents issued in the past 12 months, up from 41 in the previous 12 months and 35 before that, the pace is “relentless”, one lawyer said.

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