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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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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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Fight Brews on Changes That Affect Derivatives

By Peter Eavis
Published August 14, 2014 New York Times DealBook

Tensions are building in an enormous market that nearly brought Wall Street to its knees in 2008.

Financial regulators are pushing for an arcane but crucial modification to the contracts that stand behind the $700 trillion global market for derivatives. The change is part of the regulators’ efforts to avoid the sort of systemic chaos that occurred after Lehman Brothers crashed.

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CME's Sprague Warns About Failure to Settle Clearing Impasse

By Gregg Wirth
Published August 13, 2014 Traders Magazine

The turf war among regulators in the U.S. and Europe in the area of clearing of over-the-counter (OTC) derivatives has made central counterparties (CCPs) in those countries nervous about a mid-December deadline to reach regulatory equivalence. Among those CCPs is Chicago-based CME Clearing, which clears a large portion of euro/dollar interest rate swaps, and worries the industry could be impacted if an agreement isn't reached.

Traders spoke to Suzanne Sprague, executive director of collateral and risk for CME Clearing about the impasse, how to resolve it, and what it means for the clearing market.

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Once Powerful, Mary Jo White’s S.E.C. Is Seen as Sluggish and Ineffective

By Jesse Eisinger
Published August 13, 2014 New York Times DealBook

Mary Jo White took the helm of the Securities and Exchange Commission facing high hopes that she could turn around the once-proud agency. More than a year into her tenure, she has disappointed a wide swath of would-be allies.

Over the last several weeks, I’ve been talking to fellow regulators, administration officials, current and former S.E.C. staff members, financial reform advocates and people on Capitol Hill whose opinions of Ms. White’s performance range from dissatisfied to infuriated.

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Banks Shun Emir's Indirect Clearing Service

By Cecile Sourbes
Published August 12, 2014 Risk

Banks are still incapable of offering indirect clearing for over-the-counter derivatives more than two years after rules for the service were added to the European Market Infrastructure Regulation (Emir) – an attempt by regulators to ensure small OTC market participants would be able to clear. Big banks say the terms on which they would have to offer the service make it commercially unviable.

Indirect clearing allows the clients of a clearing member to take on clients of their own, but the member remains the ultimate guarantor of the risk, and Emir requires both groups of customers to be treated the same. That means giving the so-called end-clients a choice of at least two forms of collateral protection.

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Banks Push U.S. Fed to Delay Volcker Rule

By Kanika Sikka
Published August 12, 2014 Reuters

Banks are lobbying U.S. policy makers for a delay of up to seven years from a provision requiring them to sell investments in private-equity and venture-capital funds, the Wall Street Journal reported, citing people familiar with the matter.

Bank officials, trade groups and lawmakers are quietly pressing the Federal Reserve for a multiyear delay of the rule that limits their investments in private-equity and venture-capital funds, the Journal said.

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Regulatory Investments Begin to Turn the Corner

By Rob Daly
Published August 11, 2014 The Trade

Buy-side compliance expenditure will likely ease once regulators finish deploying major market reforms, such as Dodd-Frank, MIFID and EMIR, according to Matthew Gibbs, product manager at technology vendor Linedata, who believes recent reforms have changed internal compliance organisation permanently.

Gibbs dates changes in regulators’ behaviour to the eve of the global financial crisis.

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