News

SEC in Wait-And-See Mode on CDS Clearing Mandate

By Peter Madigan
March 4, 2016, Risk

The U.S. Securities and Exchange Commission (SEC) has no near-term plans to issue a long-awaited mandate for the clearing of single-name credit default swaps (CDS) in the U.S., according to four sources who have met with the agency in recent weeks.

Market participants see central clearing as a way to help revive the product – by reducing capital and funding requirements for dealers – and large buy-side firms recently pledged to start clearing voluntarily. Sources say the SEC now appears to be planning to see how this voluntary initiative fares, before it considers introducing a mandate.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Asian Energy Markets Liquid Enough to Sidestep Dodd-Frank Compliant Firms

By Alex Davis
Published September 27, 2012 Asia Risk

The extraterritorial impact of the US Dodd-Frank could be sidestepped by Asian players opting to conduct swap trades with players outside of the regulation’s orbit

There is enough liquidity in Asian energy markets for firms in the region to avoid the Dodd-Frank Act swap dealer requirements by not trading swaps with US-domiciled firms, according to exchange provider CME Group.

full article describe the image (subscription)


SocialTwist Tell-a-Friend Related Posts with Thumbnails

U.S. and European Derivatives Exchanges Set Sights on Asia

By Jeremy Grant
Published August 28, 2012 Financial Times

Eurex, Europe’s largest derivatives exchange, has embarked on a drive to attract customers out of Singapore after the city state’s regulator allowed it to solicit banks and brokers to become members of its Frankfurt-based clearing house.

The move is a sign that the largest derivatives exchanges in the US and Europe are shifting their attention to Asia amid weak volumes in their home markets and as Asian banks start to consider connecting with western exchanges to provide customers with clearing services.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Moody's Warns on Credit Impact of OTC Rules

By Michelle Price
Published August 23, 2012 Financial News

Managed funds could invest more heavily in lower credit-quality investments because of new derivatives regulation, Moody’s has warned, as regulatory-driven demand for liquid government debt pushes down yields.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Shifting More Derivatives Trades into the Open Creates Opportunities

Published August 18, 2012 The Economist

To its detractors, the over-the-counter (OTC) derivatives market is like a rigged poker game. They picture a smoke-filled room, in which unsuspecting clients are mastered by skilful opponents at investment banks known, perhaps appropriately, as dealers. Now regulators are trying to move more of the game into the open, by shifting OTC derivatives trades onto exchanges or electronic platforms by the end of this year, a target agreed on by G20 leaders in 2009.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Swap Dealers May Get Until January to Complete CFTC Registration

By Silla Brush
Published August 16, 2012 Bloomberg

Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) and other firms may have until January to register swap-dealing units subject to the highest collateral and conduct standards under U.S. efforts to cut risk in the $648 trillion market.

The Commodity Futures Trading Commission set in motion a series of Dodd-Frank Act rules this week when it published a regulation effective Oct. 12 determining when trades will be considered swaps. Under a separate CFTC timetable, dealers may get until at least January to register.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Derivatives: Clearing Almost Here

By Mike Kentz
Published August 15, 2012 IFR Asia

The Commodity Futures Trading Commission has published several important rules that set the clock ticking for compliance, and industry groups have released documentation and connectivity protocols that will ease the transition to clearing for derivatives market participants.

Though the CFTC had targeted October for a group of important compliance dates and the end of the year for full implementation of clearing, many were sceptical the goals would be met considering two previous deadline extensions put in place by the regulator over the past year and a half.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Foreign Banks Push CFTC to Extend Deadline for New Swaps Rules

By Alexandra Alper
Published August 9, 2012 Reuters

The U.S. derivatives regulator should extend the October deadline for foreign banks to register as swaps dealers and face a host of tough new rules, a foreign bank and an association that represents the banks said in letters posted Thursday.

Societe Generale and the Institute of International Bankers (IIB) urged the Commodity Futures Trading Commission (CFTC) to push back the registration date because the CFTC has still not finalized key guidance that will tell the banks exactly what rules they have to comply with after registering.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Trade Groups Criticize ESMA Proposals

By Philip Stafford
Published August 9 2012 Financial Times

Two influential trade bodies have criticised proposed rules to reform derivatives trading in Europe, putting more pressure on European regulators as they face a two-month deadline to finalise the rules.

The Federation of European Securities Exchanges, which speaks for stock exchanges, said on Thursday the European Securities and Markets Authority (Esma) was exceeding its mandate as the latter draws up the standards covering clearing.

full article describe the image (subscription)

 


SocialTwist Tell-a-Friend Related Posts with Thumbnails

Dealers Worry About CFTC's Extraterritoriality Guidance

Published August 7 2012 Risk

In June, the Commodity Futures Trading Commission released proposed guidance on extraterritoriality, initially offering bankers a bit of relief in terms of the agency's stance on the cross-border reach of the Dodd-Frank Act. However, last-minute changes to the guidance have resulted in inconsistencies, and dealers are voicing concerns about its complexity. 

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

US Counterparty Limits Threaten OTC Clearing Push

Published August 6 2012 Risk

International and U.S. policies for clearing over-the-counter derivatives transactions are on a collision course. The Group of 20 wants all contracts to be cleared centrally, but Dodd-Frank Act rule-makers are setting a limit on the amount that a single counterparty can clear. CME Group pointed out that two of its member firms already deal in volume that could exceed the limit.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

CME Execs Talk OTC Clearing Timeline, FCM Reform

By Joel Poelhuis
Published July 26 2012 SNL

CME Group Inc. is expecting clearing of over-the-counter contracts to ramp up at the end of the third quarter and in the fourth quarter, ahead of Dodd-Frank requirements expected to take effect in February 2013.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

CFTC's Gensler Pledges to Protect End Users Under Dodd-Frank

By Sean Sullivan
Published July 26 2012 SNL

Commodity Futures Trading Commission Chairman Gary Gensler said new rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act were designed to protect energy companies and other nonfinancial companies in the swaps and derivatives market.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

International Regulators Prepared to Challenge CFTC’s Cross-Border Actions

By Daniel Purt
Published July 25 2012 Bank Credit News

International financial institutions and regulators are poised to fight back against recent proposals by the Commodity Futures Trading Commission that seek to expand the regulatory reach of Dodd-Frank.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Dodd-Frank Needs to be Amended to Stop Another Meltdown

By Former Sen. Ted Kaufman
Published July 20 2012 The Hill

A lot of what’s in Dodd-Frank was hotly debated two years ago, but there was nearly unanimous agreement in Congress that we had to make sure taxpayers would never again have to bail out a too big to-fail bank.     

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Current Events Show Why Dodd-Frank is Necessary

By Former Sen. Chris Dodd
Published July 20 2012 Politico

Wall Street received a long overdue regulatory overhaul two years ago that fundamentally changed the way the financial sector operates and can finally provide the American people with a more secure financial sector.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Geithner Says Firms’ Failures Prove Dodd-Frank Need

By Ian Katz
Published July 18 2012 Bloomberg

Federal authorities cast further doubt on Tuesday about the integrity of a key interest rate that is the subject of a growing investigation into wrongdoing at big banks around the globe.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Payments, Clearing Firms Tagged Systemically Important

By Jeffrey Sparshott and Alan Zibel
Published July 17, 2012 Wall Street Journal

U.S. regulators named eight payments and clearing firms as systemically important, a designation that says their failure could jolt the U.S. economy and subjects them to enhanced government oversight.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Obama Official Calls For Tough, Simple Volcker Rule

By Alan Zibel and Jeffrey Sparshott
Published July 17, 2012 Wall Street Journal

A rule being developed by U.S. regulators that would bar risky trading activities by banks should be made simpler and more stringent before it is made final, a senior Obama administration official said.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Fund Managers in the Dark over New OTC Derivatives Rules

By Alexandra Fletcher
Published July 12, 2012 Wall Street Journal

Many of Europe's asset managers are in the dark about the new wave of financial regulation sweeping over Europe and the U.S. that looks set to transform the way over-the-counter derivatives are traded, market insiders say.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails