Basel Committee focuses on cost of protection in attempt to stamp out capital arbitrage, but dealers worry that sound trades will also suffer
From the ridiculous to the sublime
Banking regulator talking to Congress about altering the Dodd-Frank Act to allow a limited use of credit ratings
In this white paper, Gordon Russell, Global Head of Risk at Broadridge Investment Management Solutions argues that the chances of survival in this new environment will be greater for funds that implement solutions to efficiently and cost-effectively manage data and risk.
More Mark Pengelly articles
European banks need to reduce mismatches between their risk appetite and the risk appetite of investors, says Deutsche Bank chief credit officer
Different approaches taken by regulators and risk managers are justified, according the SEC’s Gregg Berman
CFTC says 38 FCMs would be able to act as OTC clearing members under $50 million capital limit - but dealers fear it will weaken CCPs, and call for tough membership rules to redress the balance
Basel Committee is expected to consider wide range of topics, including VAR, liquidity, CVA and the line between banking and trading books - but overall capital requirements are not likely to change
Barriers to Basel
Critics argue a Canadian OTC derivatives repository would lead to fragmented and inconsistent data
As banks prepare for year-end introduction of new trading book rules, poll respondents single out the framework's modular approach for criticism
Putting a stop to prop
CVA charge and Basel 2.5 rules incoherent and over-complicated, say dealers
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.