News
Increased competition for Australian retail deposits won’t cause future liquidity issues
The impact of an increasingly competitive landscape for retail deposits in Australia will felt in pricing, not liquidity – with the growing appeal of other asset classes a more significant threat to deposit levels
LCH.Clearnet model ‘not appropriate’ for Australian market, say two domestic banks
Two Australian banks speaking at Risk & Return Australia are critical of LCH.Clearnet for not meeting local market needs with its central clearing operation
LCH readies launch of new NDF pairs and client clearing
Five months after launch, ForexClear is ready to start offering client clearing and to add five new currencies to the service, pending the approval of the FSA and the CFTC
Korea transaction tax could halve number of derivatives transactions
Proposal for a transaction tax on futures and options could have a dramatic impact on Korea's derivatives market
Downgraded banks struggle to find replacement swap counterparties on ABS deals
A number of downgraded banks are required to find swap counterparty replacements for over 300 structured finance transactions – but this is proving difficult, with few candidates willing or able to step in
CLS hires JP Morgan veteran as chief executive
David Puth will become the next chief executive of CLS, starting next week, the settlement risk utility announced today
End-users will stop using derivatives – Risk.net poll
Proposals to require derivatives users to post initial margin on uncleared trades will cause many end-users to stop using derivatives, say a majority of survey respondents
Publication of swap definitions triggers countdown to compliance deadline
The publication of swap definitions earlier this week initiates a 60-day countdown for compliance to key parts of the Dodd-Frank Act
Regulation could create uneven playing field for structured products, say participants
A UK ban on commission payments to independent financial advisers will likely not be replicated in Europe, putting UK structured products at a competitive disadvantage, some participants warn
Errors in CFTC extraterritorial guidance to be amended
A CFTC source acknowledges that inconsistencies in the proposed interpretative guidance on the cross-border application of Dodd-Frank will have to be ironed out
Pressure mounts on Esma over clearing exemption
Responses to Esma's draft technical standard on Emir call for the agency to clarify its position on forex clearing - with some suggestion NDFs could be exempt
Hedge fund enables insurers to capitalise on bank deleveraging
Tenax Capital fund will buy bank loans and provide debt capital to corporates
Capital-at-risk structured products receive highest proportion of successful complaints: UK
More complaints against structured capital-at-risk products were resolved in favour of UK consumers than for any other financial product investigated by the Financial Ombudsman Service last year
Regulatory change will enable China insurers to reduce their asset-liability mismatch
China insurers now allowed to invest in hybrid, convertible bonds and infrastructure asset and real estate
New structured products guidance in Hong Kong raises tech bar
Issuers will have to invest more in IT following the release of new guidelines for Hong Kong’s listed structured products market
Portfolio theory vindicated by crisis, says Markowitz
Nobel prize-winner defends his work on portfolio theory, which critics claim has been discredited by the crisis
On the move
On the move
Standard Chartered case highlights reach of US rules, experts say
Accusations that UK bank hid Iranian transactions are latest example of US authorities exporting compliance obligations
Dealers seek clearing exemption for new TriOptima service
TriOptima’s new risk mitigation system, triBalance, is a big hit among dealers – but it faces a regulatory death sentence
Asia exotic commodity derivatives use to fall further on Ice initiative
Exotic commodity derivatives will become even less attractive to the Asian market following Ice's move to transform swaps to futures
People: Three axed over JP Morgan trading losses
CIO traders leave JP Morgan - the bank also creates new division, reshuffling top management; Deutsche hires Houari from Barclays; deputy fixed-income head leaves Nomura; new hedge fund hires top quant; Citi boost credit sales and trading
Central banks working on liquidity support for CCPs, says BoE’s Tucker
International regulators and central banks trying to avoid "nightmare" of fragmented clearing system
Standard Chartered case highlights reach of US rules, experts say
Accusations that UK bank hid Iranian transactions are latest example of US authorities exporting compliance obligations
SGX puts margining framework in place for cleared securities
Singapore becomes the first exchange in Asia to implement Iosco principles