News
European OTC clearing documentation faces delay
Complications over close-out mechanisms and segregation models will delay the European addendum by up to three months, say dealers
Adoboli defence will claim colleagues were complicit
The trial of UBS rogue trader Kweku Adoboli started this morning – and the defence will claim UBS colleagues were complicit
Time running out to comply with the Prospectus Directive
Issuers of structured products may not have enough time to rewrite their programmes before the grandfathering provision of the Prospectus Directive runs out, say lawyers
FSA fine for Cummings signals greater focus on individual culpability
£500,000 fine is a UK record for individuals
BNY Mellon fails to have securities lending lawsuit dismissed
The Bank of New York Mellon has failed in its bid to dismiss a lawsuit that alleges it lost more than $1 billion by mishandling pension funds’ investments in Lehman Brothers
Reinsurers urged to expand equities allocation amid 'fixed-income bubble' fears
Flight to fixed income exposing reinsurers to low yields and interest and inflation risks
Demand for commodity-linked structured products ‘almost dead’
Panellists at the Structured Products Asia conference were downbeat over the prospects for commodity-linked structures
Proposed intraday liquidity reports ‘not feasible’, banks say
Basel Committee's proposed new reports on daily liquidity needs would involve "thousands upon thousands" of data points, according to critics
Basel III guidelines may increase systemic liquidity risk for Indonesian banks
A reliance on liquid demand deposits may pose problems for Indonesian banks with no other obvious sources of funding
Critical mass reached in iron ore swaps market as traders boost liquidity
Falling iron ore prices are ramping up market liquidity to the extent that hedge funds are entering the market as a China proxy
Isda defends trading book models in response to Basel proposals
Isda pushes alternatives to Basel Committee review of trading book capital rules in leaked comment letter
On the move
On the move
Portigon abandons AMA for op risk capital calculation
Portigon – the entity that emerged from the break-up of WestLB – moves away from the AMA for op risk calculation after forced restructure
German insurers warn of Solvency II threat to infrastructure investment
Insurers keen to invest in real economy, finds BaFin study, but regulatory uncertainty holding them back
Sentiment could enhance risk models, says Algo’s Macdonald
Market sentiment could eventually be used as an input for risk and trading models, helping to predict future events, says John Macdonald of IBM Algorithmics
Hong Kong banks need to focus on local fund-raising strategies to meet Basel III requirements
Meeting Basel III liquidity requirements will mean banks in the Special Administrative Region will need to look locally, according to KPMG
Operational risk survey shows risks higher at large banks
Operational risk losses are disproportionately high at large banks, new survey finds
New Isda protocol may not fix business conduct bottleneck
Dealers hope to comply with new business conduct rules by amending thousands of Isda master agreements – but a standardised protocol published last month is expected to leave some clients cold
IEA analyst moves to Gunvor
Gunvor has hired former International Energy Agency analyst David Fyfe as head of market research and analysis
Central banks launch joint investigation into Libor scandal
Economic Consultative Committee announces examination of reference rates used in financial markets
Deutsche creates cross-asset platforms business under Amrolia
Deutsche Bank's Zar Amrolia runs a new business focused on electronic platforms across fixed income, while Kevin Rodgers has stepped up to become global head of FX
Bernardino calls for strong capital principles in global insurance framework
Consistency needed to ensure level playing field, argues Eiopa chairman
Beware attempts to reduce tail-risk hedge costs, says Rattray
The cost of systematic tail-risk hedging strategies may be high, but market participants should be wary of trying to reduce the costs by adding discretionary positions, says Vix co-inventor
People: Nomura hires Cottle as EMEA fixed income chief
Latest in series of fixed income moves at Nomura as Cottle joins to head up European fixed income; new Barclays chief executive is retail banker; UBS creates CRO job for Asia-Pacific investment banking; new fixed income and credit heads for the Americas…