By Joe RennisonPublished March 11, 2014 Risk
Russia and Ukraine's CDS spreads have jumped 20% as the political crisis continues, but neighbouring countries remain unaffected.
The territorial tug-of-war between Russia and Ukraine has forced up their perceived default risks by around 20%, but surrounding countries remain unaffected, according to credit default swap (CDS) spreads for the region's sovereigns.
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By Paloma MigonePublished March 7, 2014 The Trade
New interest rate swap (IRS) futures are failing to gain traction despite the lower margin incentive, according to Serge Marston, managing director, eCommerce sales, at Deutsche Bank.
Although a number of exchanges are now offering swap futures – which benefit from trading on exchanges and behave like an OTC instrument – the products weren’t attracting widespread demand, Marston told the FIX EMEA conference in London.
By StaffPublished March 7, 2014 BBC
Deutsche Bank, JPMorgan, UBS and the Dublin-based Depfa bank had appealed against a December 2012 verdict that ordered the seizure of 89m euros (£74m) and fines of 1m euros each.
Nine bank employees had suspended prison sentences of up to eight months quashed.
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By Philip StaffordPublished March 5, 2014 Financial Times
A global regulatory initiative to rewrite the way derivatives contracts work in a default may be slowed amid concerns that parts of the industry will not sign up to the changes.
The International Swaps and Derivatives Association, a trade association, has been working for nearly a year on contracts that will give failed institutions a temporary stay on investors’ claims on their swaps. The legal rights are triggered by a default on payments.
By Joe MontPublished March 5, 2014 Compliance Week
New guidance from the Commodity Futures Trading Commissionoutlines the data security practices it expects from firms it oversees and the third parties they contract with. The staff advisory, from the Division of Swap Dealer and Intermediary Oversight, outlines data privacy security safeguards for futures commission merchants, commodity trading advisers, commodity pool operators, introducing brokers, retail foreign exchange dealers, swap dealers, and major swap participants.
By StaffPublished March 5, 2014 Reuters
Detroit's latest proposal to end costly interest-rate swaps is likely to be opposed by Syncora Guarantee, an attorney for the bond insurance company said in U.S. Bankruptcy Court on Wednesday.
"There is a likelihood there may be an objection," Stephen Hackney, Syncora's attorney at law firm Kirkland & Ellis, told Judge Steven Rhodes at a status hearing on the city's motion on the swaps deal.
Published March 4, 2014 Markets Media
The second week of mandatory swap trading on SEFs has brought an upturn in volume following a lackluster first week, caused in part by weather and the calendar.
“Participants were understandably a little nervous on Day One to open the floodgates, and that characterized the whole first week,” said Jon Williams, co-head U.S. institutional markets at Tradeweb. “While that first week was somewhat muted, last week we saw an increase in activity in terms of customers, numbers of transactions, and size of transactions. I believe that is a positive step.”
By Matthew LeisingPublished March 4, 2014 Bloomberg
U.S. lawmakers and regulators sought to transform the $693 trillion over-the-counter derivatives market by bringing transparency and competition to a historically private part of the financial industry that worsened the 2008 credit crisis. Loosening banks’ grip over trading was a top priority for Gary Gensler, who oversaw the shift as chairman of the Commodity Futures Trading Commission.
Two weeks after the regulatory shift related to the Dodd-Frank Act took effect, there’s been little change -- and little indication that it’s coming. Banks are trading interest-rate swaps exclusively with banks in one area, while buyers and sellers such as money managers are doing business in another, according to seven people with direct knowledge of the matter, who asked to not be named because they’re not authorized to speak on the topic publicly.
By Christopher TremulisPublished March 5, 2014 Platts
A subsidiary of Goldman Sachs in Singapore has filed documents with the US-based National Futures Association to be recognized as a registered swap dealer, which brings with it an increased level of regulatory scrutiny with the US Commodity Futures Trading Commission.
The unit, J Aron & Company Singapore PTE, filed for membership and swap dealer status with the NFA on February 28. Directors for the group, San Miu Doris Cheung, Boon Leng Goh, Christopher McKey, Keng Leong Ng and Chin Thean Quek, registered as principles of the subsidiary with the NFA on Monday.
By Ian KatzPublished March 3, 2014 Bloomberg
U.S. regulators will focus this year on improving transparency in derivatives markets and continue to analyze whether asset-management firms pose a potential risk to economic stability, the U.S. Treasury Department’s top domestic-finance official said.
Mary Miller, the undersecretary for domestic finance and acting deputy secretary, said she will emphasize the “need for an effective swaps data reporting regime, one designed to ensure that we have the information necessary to develop a comprehensive picture of market exposures and risks.” She was to speak at a conference held by the Institute of International Bankers in Washington today.
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