A group of dealers hoping to avoid the systemic implications of counterparty risk is working with the Clearing Corporation on establishing a central clearing house for certain credit derivatives products.
Banks are coming under increasing pressure from regulators, politicians and bank shareholders to review their pay and bonus structures to ensure traders are not incentivised to take excessive risks.
The derivatives industry is facing regulatory demands to improve operations-related issues. In recent weeks, both the President's Working Group on Financial Markets (PWG) and the Financial Stability Forum (FSF) have pushed dealers to enhance the infrastructure...
The European Commission (EC) has launched a public consultation on more than 50 technical changes to the Capital Requirements Directive (CRD).
The subprime crisis has sparked fears that regulators may insist on banks holding higher regulatory capital, a result some bankers insist would choke off lending and push the global economy into a recession.
As more details emerge on the rogue trading scandal that caused a EUR4.9 billion loss, Société Générale appears more a victim of risk management failures than of a genius of fraud. But is this case a one-off, or are other institutions similarly vulnerable?...