Derivatives safe harbours are viewed as crucial to close-out netting. However, they are under siege from the US Congress, where legislators have tried to undo the protections given to market participants when a counterparty defaults. Mark Pengelly reports
Hedge funds and dealers reported to suffer losses from recent equity derivatives moves
Increased protection selling on sovereigns raises fears about systemic risk
After recent financial turmoil, market participants are thinking much more rigorously about ways to protect themselves against the possibility of rare but extreme events. However, effectively hedging tail risk is not straightforward. By Mark Pengelly
Amendment to US financial reform package proposes an end to derivatives safe harbours
NYSE, SEC and CFTC claim 'fat finger' error not the cause of last week's stock market plunge.
Heated debate over financial regulatory reform going through the US Congress was at the forefront of the International Swaps and Derivatives Association’s annual general meeting in San Francisco last month.
Regulators have pushed hard to ensure buy-side firms are able to access central counterparties since the crisis began. But despite the launch of several new services, very few buy-side participants are actually using them. By Mark Pengelly
As the markets recover from the crisis, counterparties are using much lower levels of collateral, an Isda survey has found.
A speaker from BAML calls for delays to US financial reform proposals.
Uncertainty over the final shape of regulatory reform is reportedly making buy-side firms wary of committing to central clearing.
High credit default swap spreads on Greece reflect real concerns, not speculation, and demonstrate the product's usefulness, Isda heard on Friday.
The rate of decrease in notional volumes of credit default swaps (CDSs) has slowed, according to the International Swaps and Derivatives Association’s year-end 2009 market survey, which was unveiled at its annual general meeting in San Francisco on...
The US Securities and Exchange Commission filed a lawsuit against Goldman Sachs in April, alleging the firm misled clients. Some observers suggest the action may not be successful, but criticise Goldman’s behaviour. By Mark Pengelly and Duncan Wood
Goldman Sachs has been sharply criticised for arranging a synthetic collateralised debt obligation (CDO) at the centre of a lawsuit filed by the US Securities and Exchange Commission (SEC) last week.
Despite regulatory calls for buy-side clearing of credit derivatives, few client trades are being cleared.
The New York Federal Reserve is to reveal its aims for reducing risk in the tri-party repo market this month.
Dealers and hedge funds were hammered by sharp falls in dividends during late 2008 and early 2009. Since then, liquidity has recovered as a wider range of market participants take advantage of the dislocation. Mark Pengelly reports