Faith in funding
DBS to debut CNH structured notes in Singapore; close-out settlement backstop in place to deal with China policy u-turn
DBS is set to become the first financial institution to offer renminbi structured notes and unit trust to private banking clients in Singapore on February 28. The bank has also drawn up contingency plans to address the policy risk of Beijing changing...
Chinese corporates will now have access to onshore and offshore hedging markets
New Islamic frontiers
The CSRC plans to ban derivatives dealers from using QFII quotas to on-sell derivatives mirroring CSI 300 index futures contracts to offshore clients. The move looks set to challenge ETF fund managers when hedging China index-tracking funds.
China's State Council is advising the Shenzhen municipal government and local regulators about permitting renminbi conversion outside of currency restrictions
Asian Financial Forum: China and Hong Kong to collaborate more on cross-border access and cross-listings of ETFs, says CSRC chief
Hong Kong and Shanghai are set to more closely align clearing and settlement systems enabling the cross-listing of instruments such as exchange-traded funds. Meanwhile, the Chinese authorities plan to encourage state-owned enterprises to launch so-called...
HKEx plans to beef up its risk management following the bankruptcy of Lehman Brothers in September 2008 by introducing margin rules and seeking more funds from cash clearing members. The move would bring cash clearing more in line with existing derivatives...
Hong Kong joins Japan in mandating central counterparty clearing for OTC derivatives with CCPs and a central repository expected to be set up in the coming months.
Asian banks likely to opt for harmonised OTC clearing approach with the US and expect higher hedging costs for corporates
Traditional exchanges have nothing to fear from alternative trading venues as long as they keep innovating, according to the Singapore Exchange’s head of corporate and market strategy. OTC derivatives central counterparty clearing, meanwhile, presents...
New Islamic frontiers
Obligated to risk
The World Federation of Exchanges has urged US Treasury secretary Tim Geithner to keep forex derivatives under Dodd-Frank to block banks from using the exception for interest rate derivatives transactions. But a senior Westpac banker and rival trade associations...
Asian regulators are increasingly warming to the concept of an Asian funds passport similar to the Ucits directive of the European Union. This might result in the region having its own cross-border fund vehicle enabling funds to be freely 'passported'...
Andrew Fung, head of treasury and investment at Hang Seng Bank in Hong Kong, believes the Hong Kong and Chinese governments should simplify procedures for offshore renminbi to be remitted to mainland China. This would increase the appeal of RMB bond funds...
Cross-border listings through fungible depository receipts is seen as one way for corporates to diversify funding sources and promote investor interest by exploiting equity arbitrage opportunities
Asia Risk Congress 2010: Hong Kong finance official says government is pushing China to further ease controls on ‘dim sum' bonds
Asia Risk Congress 2010: Hong Kong finance official says government is pushing China to further ease controls on ‘dim sum’ bonds. Meanwhile, an open-ended renminbi bond fund by Income Partners is launched
Several Asian nations could compel their banks to clear swaps in-country - others seek to join foreign CCPs on special terms
Eleven central banks and monetary authorities are teaming up with Islamic multilateral organisations in an effort to bolster supply of highly rated, short-term Islamic paper through an entity called the International Islamic Liquidity Management Corp....
Malaysia is driving efforts to standardise Islamic finance to enable the creation of cross-border markets for sharia-compliant products. But regulators and market participants in Islamic states say no agreement is likely in the near future.
Russian corporates and infrastructure companies are increasingly turning to Asia and the Middle East to help meet their financing needs