Foreign exchange
Basel cuts op risk charge benchmark to 12%
Global banking regulators will base their proposed capital charge for operational risk on a 12% benchmark, down from the controversial 20% originally proposed.
GFInet launches new credit derivatives service
GFInet, the online interdealer broking service of GFI, has launched a Credit Default Swap Mark-to-Market (MTM) service today. The product will enable GFI, one of the largest brokers in the credit derivatives market, to make its comprehensive market price…
Basel scraps 'w' charge from pillar 1
The Basel Committee on Banking Supervision has reacted to strong industry criticism of its controversial 'w' charge by scrapping it from pillar 1, regulatory capital, of its proposed new regulatory capital requirements – Basel II. It will now be included…
Front launches new patnership programme
Trading and risk management technology provider Front Capital Systems has launched a new project to better deploy and implement risk management software in financial institutions.
UK corporates taking more risks
UK companies are adopting a more risk-taking stance in making their business decisions, and perceive risk management as a beneficial tool to gain competitive advantage, according to a survey by professional services company Deloitte & Touche.
Basel regulators put op risk charge below 15%
Global banking regulators will cut to below 15% from 20% the benchmark figure on which they intend basing the controversial operational risk capital charge they propose for large international banks from 2005.
Rolfe & Nolan removes Lodge as CEO
UK derivatives systems vendor Rolfe & Nolan has ousted its chief executive officer, John Lodge, as part of an effort to boost confidence among its customers and shareholders. The company, which has seen its share price plunge over the past two years,…
Rating agencies to keep an eye on the banking sector
The world’s three key rating agencies have released statements about the possible repercussions on the banking sector of last week’s tragic attacks in New York. Moody’s said it is not contemplating any immediate rating downgrades for European banks…
Isda moves to stabilise derivatives markets
The International Swaps and Derivatives Association has issued guidelines to help traders close outstanding equity derivatives positions following the major disruptions to financial markets caused by last week’s terrorist attack on the World Trade Center.
Fed arranges swap deals to smooth liquidity
The US Federal Reserve has agreed temporary swap arrangements with the European Central Bank (ECB), the Bank of England and the Bank of Canada designed to help international banks meet any shortfall of dollars needed to settle market positions created by…
Equity derivatives markets brace for US opening
The equity options markets were rudderless this week, with the lack of implied volatilities for the US market – used for marking and pricing options – effectively grinding options trading to a halt.
S&P affirms ‘AAA’ ratings on US clearings
The US's central securities depository, the Depository Trust Company (DTC), and three clearing bodies, the National Securities Clearing Corporation (NSCC), the Options Clearing Corporation (OCC) and the Board of Trade Clearing Corporation (BOTCC), have…
Europe’s electricity markets hamstrung by mergers
Competition in the European power markets is being hampered by the spate of consolidation in the sector, according to research by Reinhard Haas and Hans Auer of the Vienna University of Technology, presented at Energy & Power Risk Management magazine’s…
Bernstein admits change of heart at ARS conference
Peter Bernstein, author of “Against the Gods”, the best-selling book on the history of risk, now says he “got the point all wrong” in the book. Bernstein, giving the keynote address at Risk magazine’s Alternative Risk Strategies 2001 conference in New…
Isda says more work needed on accounting standard
The International Swaps and Derivatives Association (Isda) has filed comments on the draft standard “Financial Instruments and Similar Items”, proposed by the Joint Working Group of Standard Setters (JWG).
Icap buys out Prebon's stake in spot FX venture
Cash-rich UK inter-dealer broker Icap has bought out the 52% stake it did not already own in a spot FX joint venture with rival Prebon Yamane for £6.2 million.
Hong Kong plans to extend derivatives trading hours
The Hong Kong Exchange (HKEx) is consulting the industry on whether to extend the trading hours of Hong Kong stock-related derivatives and their underlying assets. Currently, stock options and futures contracts are traded for a total four and a half…
New alliance to consult on hedge fund portfolio risk
PlusFunds, the New York-based hedge fund exchange, has teamed up with the Albourne Group, a hedge fund risk consultant, to form Albourne Plus (A+), a new risk consulting service for institutional investors.
Basel II delay to add to banks’ confusion
LONDON - Confusion about operational risk is likely to increase among several major banks as a result of the 12-month postponement of the Basel II banking accord, according to Andrew Grant, London-based head of risk practice at professional services firm…
Basel acts on private equity losses
The Basel Committee on Banking Supervision has issued a proposal for determining the capital reserves for bank equity exposures. It promises to be as controversial as the other aspects of the Basel II capital Accord.
Why an Op Risk capital charge is dangerous and won’t work
The operational risk capital charge proposed under the Basel II banking accord is fundamentally flawed, and could have unintended and highly undesirable consequences, argues Karen Shaw Petrou.
Op Risk discussion document will reflect shifts in regulator thinking
BASEL - The discussion document on operational risk expected in September from global banking regulators will try to cover all the concerns raised by bankers about this controversial aspect of the Basel II banking accord, regulators said.
A call to action for Op Risk insurers
Insurance companies must not waste time now the Basel II regulators have shown an amber light to operational risk insurance, say Roland Avery and Daniel Butler.