News/Foreign exchange
Singapore eases restrictions on foreign derivatives firms
The Monetary Authority of Singapore (MAS) has liberalised its Singapore dollar non-internationalisation policy, to allow greater participation in its capital markets by international investors and financial institutions.
Cap guarantee funds still booming in Hong Kong
Several capital guaranteed funds have been issued in Hong Kong over the last few weeks, with more expected before the end of the month, despite a consensus that a rise in interest rates may reduce the attractiveness of such structures.
China opens forex market
A flurry of overseas banks have received approval from the People’s Bank of China (PBOC) to conduct foreign currency business with Chinese corporate and individual customers – the first tangible deregulation of the financial market since China’s signing…
Goldman signs up Imagine for prime brokerage
Goldman Sachs is to offer Imagine Software's ASP risk management and trading services to clients of its prime brokerage unit, GSI Prime Brokerage, formalising a partnership begun last year in which GSI clients started using the Imagine product.
Citi traders sacked as Allfirst probe continues
Citigroup this week dismissed two traders linked to the Allfirst trading losses, as the investigation into rogue trader John Rusnak’s counterparties continued.
IMF issues credit derivatives warning
The International Monetary Fund (IMF) believes the lack of financial disclosure and transparency in the credit derivatives market has the potential to increase market risk, as participants find it more difficult to gauge the depth of credit deterioration…
UK regulator disappointed at latest Basel II delay
Britain’s principal financial watchdog, the Financial Services Authority (FSA), was “a little disappointed” at the latest delays to the Basel II banking Accord, a senior FSA official said today.
No compromise from Feinstein on energy bill
Californian Democrat Senator Dianne Feinstein and Texan Republican Senator Phil Gramm have failed to reach a compromise over Feinstein’s proposed energy bill, which could give the Commodity Futures Trading Commission (CFTC) authority on over-the-counter …
UBS increases use of credit derivatives
Swiss investment bank UBS Warburg hedged around 30% of its corporate and institutional lending in 2001 using credit derivatives and other credit instruments. The inceased focus on credit risk follows the record number of global corporate defaults in 2001.
UK regulator will not shoe-horn insurers into banking regime
UK financial supervisors do not intend to 'shoe-horn' insurance companies into a regulatory regime designed for banks, a senior regulator said today.
Moody's extends RiskCalc coverage to UK
Moody's Risk Management Services (MRMS) has added non-financial private UK company data to its Web-based default estimator tool, Moody's RiskCalc.
Rusnak's fraudulent trading strategy revealed
The independent report commissioned by Allied Irish Banks, carried out by US banking specialist Eugene Ludwig, details how former Allfirst foreign exchange trader John Rusnak managed to hide his forex trading losses with the creation of bogus options…
Macquarie issues dividend warrants in Hong Kong
Macquarie Equities Asia, a division of Australia’s Macquarie Bank, has launched a new warrant product into the Hong Kong market. Called the dividend accumulator warrant, it pays investors dividends equal to the underlying share over the life of the…
OCC says derivatives revenues, notionals down
US commercial banks’ revenues from derivatives fell by $805 million, to $2.65 billion, from the third to the fourth quarters of 2001, according to figures released yesterday by the Office of the Comptroller of the Currency (OCC).
EIB loan protection
News
BNL plans weather desk for Italy
Rome-based Banca Nazionale del Lavoro (BNL) is planning to set up a weather derivatives desk, which could add to the recent thrust of new players in the weather risk market. BNL hopes to establish the desk, specifically for the Italian market, by the…
Thyssenkrupp
News
New multi-bank op risk data pooling venture
Over a dozen large global banks plan to form a new not-for-profit venture to pool operational risk data this spring. The Operational Risk Data Exchange (ORX) will be incorporated in Switzerland – selected for its data privacy and confidentiality laws –…
Hawke highlights "thorny issues" of Basel II
John Hawke, the US Comptroller of the Currency, this week said that “there are a number of thorny issues that remain to be worked out” in the Basel II bank capital adequacy Accord. Speaking at a conference held by the Institute of International Bankers…
Basel regulators still hoping for 2005 date
The Basel II bank capital adequacy Accord could still come into effect by 2005, although the date does hang in the balance, international regulatory sources said.
HSBC to bolster Asian structured derivatives operation
HSBC is to expand its structured derivatives team in Asia in an attempt to leverage off its interest rate and currency swaps business.