Foreign exchange
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Liquidity risk
Ratings agencies must try harder, Sifma says
A report from the Securities Industry and Financial Markets Association (Sifma), a New York-based industry lobby group, has criticised efforts by the major credit rating agencies to reform themselves.
Ambac clears deck of $1.4 billion CDO-squared
New York-based bond insurer Ambac has rid its books of exposure to a $1.4 billion collateralised debt obligation-squared (CDO-squared) transaction, by commuting a guarantee written on it for arranger Citi.
Fed’s OTC processing targets expanded to interest rates and commodities
For the first time, major traders of over-the-counter derivatives have pledged to improve operational efficiency for interest rates and commodity derivatives, as well as further improve processing speeds for credit and equity derivatives.
EC works to cut reliance on rating agencies
The European Commission hopes to reduce the dependence of financial institutions, regulators and governments on rating agencies, which it sees as a key factor in the current financial crisis.
US securities regulator extends emergency short-selling order
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BarCap works to revive life insurance securitisation
For Barclays Capital, a recent £250 million ($495 million) securitisation of part of UK insurer Aegon Scottish Equitable’s life portfolio proves there’s life left in the life insurance securitisation market.
Firms heed Kerviel lesson by linking front and back offices
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MSCI Barra produces global currency indexes
MSCI Barra has launched global currency indexes that can be licensed for portfolio management and benchmarking purposes, as well as to serve as the basis of structured products and other index-linked investment vehicles such as ETFs.
Lyxor AM launches first ETF on Gulf region
Lyxor Asset Management, the exchange-traded fund (ETF) arm of Société Générale, has launched the first ETF focusing on Kuwait in collaboration with Coast Investment and Development Company, on the London Stock Exchange.
SEC extends short-selling ban as hunt for rumour mongers intensifies
The US Securities and Exchange Commission (SEC) has extended its order prohibiting short-selling activity for another two weeks, as the regulator narrows its investigation into the source of market-manipulating rumours.
Crosby Report wary of more UK government intervention
In an interim report released today, Sir James Crosby, deputy chairman of the UK Financial Services Authority (FSA), warned against the government becoming more deeply involved in attempting to prop up the mortgage market.
Lehman Brothers launches second issue of Kick Out Performance Plan
Lehman Brothers has launched the second issue of its five-year Kick Out Performance Plan, with two options linked to the FTSE 100 index. One option offers an annual kick-out providing 14% and the other option offers a six-month kick-out, potentially…
US regulators face Congressional pressure for risk reform
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Barcap’s Siddiqi assumes FX product distribution responsibility
Barclays Capital in Singapore has promoted Lutfey Siddiqi, managing director and Asia Pacific head of corporate FX and risk advisory, who has now assumed management responsibility for the distribution of the full suite of flow and structured FX products…
GFI expands in European Gas
Interdealer broker GFI has started broking Title Transfer Facility (TTF) on its EnergyMatch Europe electronic trading platform.
CFTC dismisses speculation speculation
The US Commodity Futures Trading Commission (CFTC) has found no evidence that speculation is responsible for the rise in crude oil prices, despite political pressure to curb the activities of hedge funds and other futures investors blamed for high fuel…
Further monoline downgrades likely
Moody's has put the last two remaining 'legacy' monoline insurers to maintain a Aaa rating - Assured Guaranty and Financial Security Assurance (FSA) - on watch for a downgrade.
New York sues UBS for alleged auction rate securities fraud
UBS executives sold off $21 million in personal auction rate securities (ARS) holdings just days before the market ground to a halt, while continuing to market the securities to unwitting consumers, a New York State lawsuit has alleged.
ING unveils principal protected oil-linked fund in Thailand
ING is launching a new principal protected fund in Thailand, linked to the performance of the Nymex WTI Crude Oil Index. The fund was due to float yesterday, but has been delayed as the bank waits for the final approval on the index from Thai regulator…
Schiro takes over global structured products at UBS
Vito Schiro has been appointed head of global structured products by UBS while continuing as head of European Equity Derivative Sales. Schiro will report to Jason Barron in equities and Fabian Shey in FICC, a group that was formed by integrating the…
Basel Committee releases incremental risk charge proposal
The Basel Committee on Banking Supervision today released revised proposals for the charging of capital for incremental risk in the trading book. The new rules, developed in conjunction with the International Organisation of Securities Commissions, are…
New GSE legislation to be approved by end of week
Sweeping new legislation empowering the US Treasury to provide Fannie Mae and Freddie Mac with virtual carte blanche to access to government lines of credit could be approved by Congress as soon as the end of this week, Treasury secretary Hank Paulson…