Risk management/Exchanges
High correlations spur interest in CCDS
Interest in using contingent credit default swaps (CCDS) as a speculative tool is being fuelled by high levels of cross-asset class correlations, according to some market participants.
Cebs publishes guidelines on liquidity buffers
Financial institutions must hold substantial buffers of liquid assets such as cash to enable them to get through a period of at least one month of liquidity stress, according to new guidelines published by the Committee of European Banking Supervisors …
Cebs consults on liquidity buffers
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UPDATED: CFTC plans speculation clampdown
The Commodity Futures Trading Commission (CFTC) will hold public hearings in July and August to discuss the need for federal position limits to be imposed on energy futures traders.
NYSE Liffe’s CDS clearing platform in doubt
The central clearing service for credit default swaps (CDS) offered by London-based derivatives exchange NYSE Liffe is “under review”, an official at the firm told Risk .
Finra scrutinises muni-bond market; US Treasury creates Consumer Financial Protection Agency
The US Financial Industry Regulatory Authority (Finra) has launched an investigation into financial institutions' underwriting derivatives contracts used by US municipals to finance debt at lower costs.
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Structured Products
New agreement on restructuring for European credit default swaps
European credit derivatives dealers have revised the details of a proposal to integrate restructuring as a credit event into the auction settlement process for credit default swaps (CDS), in preparation for the launch of the so-called ‘small bang'…
Isda aims to improve collateral management processes
The International Swaps and Derivatives Association’s collateral committee has revealed a set of goals for improvements to collateral management processes.
Waxman-Markey early action provisions criticized as unclear
Industry commentators have spoken out about the provisions for early adoption of carbon emission reduction strategies in the cap-and-trade legislation currently going through the US House of Representatives.
US Congress: Banks may need more stress tests
A Congressional report into the stress tests imposed by the US Treasury on leading US banks earlier this year has warned that the stress scenarios used might have been too mild, and that the tests may have to be repeated later this year.
EU consults on Sepa migration deadlines
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Industry opposes mandatory clearing
Compulsory central clearing is not a one-stop solution to the problems of the derivatives markets, and could end up crippling the industry, warned speakers at an industry event in London on Tuesday.
OTC Global Holdings pushes into agricultural products
Interdealer broker OTC Global Holdings (OTCGH) has announced the acquisition of two Chicago-based firms, Futures International and T&J Shuff Enterprises, specialising in agricultural futures and options contracts in corn, wheat, soybeans, soybean meal…
CFTC targets dealers, leverage and counterparty risk
Gary Gensler, the new chairman of the US Commodity Futures Trading Commission (CFTC), outlined tighter restrictions on derivatives dealers and traders in testimony to the US Senate yesterday.
OMG commits to new clearing and reporting targets
The Operations Management Group (OMG) on June 2 outlined its latest targets to improve the operational infrastructure of the over-the-counter derivatives industry.