Top story
The furore over physical commodity trading
Despite the agitation over their role, there are valid reasons why banks are involved in physical commodities
Commodity hedgers alarmed by CFTC margin proposals
Margin rules proposed after the collapse of MF Global could dramatically raise the cost of hedging, complain market participants
CDS licence approvals too slow, Sefs claim
Sefs claim their applications for licences to offer single-name and index CDSs are moving at a glacial pace – echoing allegations made by the European Commission
WGMR exemption for FX swaps and forwards expected imminently
Final rules on margin requirements for non-centrally cleared derivatives are expected within weeks, including a long-awaited exemption for forex swaps and forwards
Cat bond ‘lite’ structures raise contamination risk and insolvency fears
Investors and lawyers voice concerns about using segregated accounts structure to issue streamlined cat bond instruments
Bitcoin faces pressure over slow transactions
The New York Department of Financial Services has launched an investigation of digital currencies such as Bitcoin, on service-level and money-laundering concerns
Single-name CDS clearing held up by fears over SEC regime
Temporary rules for portfolio margining by clients are set to expire in December. Hedge funds say they will stay on the sidelines until they know what happens next
Divergence fears over insurer resolution proposals
Scope of Financial Stability Board proposals to give supervisors extended powers ‘unclear’
Banks’ physical commodity trading comes under scrutiny
Amid a review of a 2003 determination by the Federal Reserve, the involvement of US banks in physical commodities has come under fire from regulators, politicians and the media. Could they really be forced to exit physical trading? Alexander Osipovich…
Insurers developing internal model risk calibrations for non-standard credit assets
Underlines growing strategic importance of infrastructure bonds and MBS, finds survey
CME default fund contributions likely to rise following CFTC move
A change in CFTC rules could lead to clearing members having to increase default fund contributions at CME and other US CCPs
HMRC grappling with impact of UK bank levy on clearing
HM Revenue & Customs "does not wish to discourage" client clearing business, which is caught by UK balance sheet tax
Q&A: NAIC's CEO and president on group supervision, systemic risk and captives
The standard-setters
Insurers prepare for interest rate hikes
Rate of relief
Energy firms find Emir thresholds too close for comfort
The European Market Infrastructure Regulation will force non-financial counterparties to clear trades in over-the-counter derivatives once they reach a set of notional thresholds. And despite their original expectations, many energy companies could be…
Nikkei falls fail to dent redemption-driven demand for Japan equity-linked notes
Japanese investors are buying equity-linked notes in record numbers, even as the Nikkei comes off its highs. Most of the demand is coming from investors who have had notes redeemed, say banks
"London Whale" will testify against colleagues
Criminal and civil charges against JP Morgan traders show Iksil will co-operate with prosecutors
NAIC calls for coordination of US and international systemic risk regimes
Financial Stability Board's G-Sii regime should be consistent with US Sifi rules, says NAIC chief
Energy traders lag on post-trade processing, survey finds
Baringa Partners survey suggests firms may struggle to cope with European financial regulation
EPA rules may create new opportunities for US carbon traders
The US government is planning to use the Environmental Protection Agency to combat climate change, in a move that could create new opportunities for carbon traders, according to lawyers and analysts. Alexander Osipovich reports
Federal regulation may increase compliance burden, head of op risk warns
US insurers dealing with potentially heavier load from federal regulation and the Orsa
CCPs in Japan, Mexico, Singapore and US to jump through Esma hoops
Eleven CCPs say they will apply to Esma for approval – sparing European members a capital hit – but Canada's CDCC has no plans to go through the process
German banks in fight for market share as FTT looms
The waiting game
Hedge funds’ registered AUM tops $4 trillion according to SEC data
The Securities and Exchange Commission has reported data collected under Dodd-Frank showing total regulatory AUM, which includes financial leverage, for hedge funds is over $4 trillion