News
Basel leverage ratio may force CSA restructuring
Cash collateral can only reduce derivatives exposure if it matches the currency of the underlying swap, threatening existing CSAs and even the new standard CSA
Basel III likely to create further consolidation in Kazakh banking sector
The Kazakhstan central bank's intention to begin implementing Basel III from 2015 is likely to speed up the banking sector's current consolidation phase
Pension funds call for clearing exemption extension
Funds cite inability to post non-cash variation margin as grounds for further relief
Commodity traders not too big to fail, suggests FSB report
Trafigura, Vitol and other trading houses unlikely to be captured by proposed criteria for global systemically important financial institutions
Oil majors step up commodity derivatives market making in Asia as banks cut back
Handicapped by tighter regulations, banks have ceded derivative market-making share to oil majors such as BP and Shell
Industry welcomes footnote 513 no-action extension
Industry sources have welcomed CFTC decision to extend no-action relief for its non-US swap dealer requirements and to consult on definitions
Too-big-to-fail problem solved, claim leading industry figures
FDIC's single-point-of-entry method applauded but concerns still linger
CFTC-Ferc deal leaves enforcement question unanswered
Agreements reached under US Dodd-Frank Act fail to address critical issue of enforcement
Clarification needed on CCP close-out netting in India
Current netting statutes only apply to clearing members and not the CCP itself
Reinsurers welcome reduced collateral requirements for US business
Piecemeal reform of reinsurance laws continues to frustrate Lloyd’s market
Swift plans push into KYC for corporates and banks
Initial service will focus on bank policies, but Swift aims to expand
Commission urged to curb supervisors’ leeway on volatility adjustment
Delegated acts must set stringent conditions for calculating fundamental spread, insurers say
HMRC excludes client clearing from UK bank levy
UK tax authorities exclude client collateral received as a result of clearing activities from bank levy, after complaints it would act as a disincentive to clearing
China metal repo business included in Deutsche Bank commodity cuts
Former commodity heavyweight has also closed its successful metals financing business as part of global restructuring
SEC names new chief of enforcement unit
New lead for SEC's complex financial instruments unit
Japan dealers stop back-loading to CCPs due to de minimis uncertainty
CFTC rule potentially captures legacy trades novated to CCPs
FI trading revenues expected to slide further – Risk.net poll
Fixed-income trading revenues will continue to fall in 2014, believe respondents to a Risk.net poll
SEC whistleblower retaliation protection ambiguous, lawyer warns
Protection for whistleblowers not clear cut
Finra bears down on complex structured products
Topping the regulator's list of priorities for 2014 is ensuring that US brokers make adequate enquiries before offering complex products to retail investors
FX clearing a priority for 2014, vows CLS chief
Working with banks and CCPs to facilitate central clearing of OTC forex options is 'high priority strategic initiative' for CLS this year, says chief executive David Puth
CVA desks could struggle with Volcker correlation tests
Banks turn to lawyers for advice as CVA functions face tougher conditions than other trading desks
SGX becomes first Asian firm to be designated a derivatives clearing organisation
CFTC ruling comes a week after it granted qualified substituted compliance to three Asian regulatory regimes
Frontloading fears remain despite Esma guidance
Uncertainty has been narrowed by Esma Q&A, but dealers say they will still face pricing headaches
Op risk, FVA and OIS - Risk.net’s top stories of 2013
Operational risks, funding valuation adjustment and the money made by one dealer in the early days of OIS discounting – the top stories of the year on Risk.net