News
Lack of liquidity in OTC derivatives market must not prevent the creation of a Korean CCP
Maintaining parity with international peers, not derivatives market liquidity, the main criterion for introducing central counterparty clearing, according to the Korean Exchange
Tight regulation a barrier to the development of Korean hedge fund market
Prime brokers speaking at Risk/Return Korea voiced concerns over the potential for regulations to strangle the country’s nascent hedge fund sector
Banks are retreating from market-making, managers warn
Forex investment has became more challenging, as market-making banks facing new regulation have become less willing to take risk, say buy-side firms
Central clearing - challenges and progress: part 2
Diana Chan, chief executive of EuroCCP, talks to Jessica Meek on interoperability in cash equities and OTC derivatives
On the move
On the move
Volcker to be implemented through trial and error, expert warns
US regulators' 'heuristic' process for implementing the Volcker rule is called into question
US energy firms fear Dodd-Frank ‘swap dealer’ definition as decision looms
The US Commodity Futures Trading Commission (CFTC) is approaching a key point in the process of writing rules to implement the Dodd-Frank financial reform bill: its final definition of the terms 'swap dealer' and 'major swap participant'. Energy firms…
Greek auction result could undermine CDS use
An early trigger is unlikely, but fears of distorted auction outcome remain – and could undermine the use of credit default swaps as a hedge, say market participants
Banks criticise plan to deduct DVA from equity capital
Comment letters from Isda and Bank of Montreal argue Basel Committee proposal on DVA deductions goes too far
Further legislative delays could compress Solvency II ‘soft launch’ period - FSA
Regulator updates internal model approval process
Chinese government hampering financial industry, World Bank warns
New World Bank report sees flaws in China's regulatory system
Central clearing - challenges and progress: Part 1
EuroCCP's Diana Chan talks to Jessica Meek on the issues facing the clearing industry
Goodbye VAR? Basel to consider other risk metrics
Trading book review will look at replacing value-at-risk, but quants say the obvious alternative - expected shortfall - is not much better
Changing hats, March 2012
Sharon Bowles retains her role as chair of Econ in the EU, while Rosalind Tyson retires from the SEC and Chartis appoints a new CRO
Nomura and Tradition partner to launch electronic ETF trading platform
The Navesis-ETF platform will allow institutional traders, sell-side banks and market-makers to carry out intra-day and auction trading of exchange-traded funds
Commodity investing to bounce back in 2012
Investments in commodities are expected to increase in 2012 after dipping last year, with crude oil, gold and copper tipped as best performers, according to a Barclays Capital survey
Indian corporates struggle with FCCB redemptions
Many Indian issuers of foreign currency convertible bonds maturing this year face defaulting on the debt after depressed equity prices force the companies to redeem rather than convert the bonds to equity
Fuhr creates ETF advisory firm
Deborah Fuhr, Shane Kelly and Matthew Murray have formed ETF Global Insight, a consultancy that will offer independent advice to the global ETF community
Doubts raised over US Department of Energy CRO proposal
An independent consultant hired by the White House to assess the US Department of Energy’s loan programmes in the wake of the Solyndra bankruptcy has advised the agency to hire a corporate-style chief risk officer and beef up its risk-management…
Margin rules for uncleared FX rest with regulatory working groups
Regulators must adopt a calibrated approach to mandated collateral so that short-dated FX swaps and forwards are not caught up in the rules unnecessarily, argue market participants
Aegon €12 billion longevity swap ‘shows appetite of capital market for diversifying assets’
Aegon €12 billion longevity swap ‘shows appetite of capital market investors for diversifying assets’
Danish and Latvian debt offices weigh two-way collateral
The costs of transacting swaps with one-way CSAs mean more debt offices could join Hungary, Ireland, Portugal and Sweden
PowerShares adds to high beta ETFs to capitalise on bull markets
Invesco Powershares has listed two exchange-traded funds that provide exposure to high-beta stocks from emerging and developed markets
CFTC: largest 6% of CDS and rates trades to get block exemptions
Hundreds of OTC product types would receive different reporting and trading thresholds under new CFTC proposals - but there is no exemption for equity derivatives