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Structured products

Basel inflicts collateral damage

The current Basel proposals could lead to the global spread of the type of systemic loan loss problems Japan is now experiencing, argues John Frye of the Federal Reserve Bank of Chicago.

Advanced measurement approaches

The September working paper on operational risk from the Basel Committee on Banking Supervision confirmed that global banking regulators are looking at a range of advanced ways of calculating op risk capital charges instead of a single method.

Pro-cyclicality in the new Basel Accord

Could Basel II worsen recessions? By backtesting the proposed capital rules to the last recession, D. Wilson Ervin and Tom Wilde argue that the increased risk sensitivity of loan portfolio regulatory capital in the new Accord could have unwelcome…

German exchanges offer US equity products

Deutsche Borse and Eurex, owned by Deutsche Borse and the Swiss Exchange, have launched a tranche of new US stocks and futures to be traded in Europe. The initiative is designed to enable members to trade 10 euro-denominated stock options on US equities,…

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,…

Liffe adds more Universal Stock Future contracts

The London International Financial Futures and Options Exchange (Liffe) is introducing 30 new Universal Stock Futures (USFs), to be available for trading from October 31. The new contracts will push the total number of Liffe's USFs to 95, giving them a…

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.

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