News
People moves: Hsu swaps HSBC for StanChart
Also: Instinet hires Asia-Pacific CEO, China chief for Citi, IDFC Bank names new chief exec; and others
Large corporates unconvinced by Emir reporting gift
Corporates ask for opt-out from Emir reporting changes proposed for their benefit
Twin member default would hit up to 23 CCPs
New FSB analysis reveals interdependencies of clearing system
PRA urges insurers to act on ‘silent cyber’ risks
Watchdog urges underwriters to embrace cross-policy stress-testing to identify exposure to claims from non-specified risks
Commodities firms fear EBA’s inappropriate capital charges
Energy lobbying overlooked as proposed regime threatens vigorous demands
CCP margin backtests can hide flaws, research finds
In richer test, ‘filtered’ VAR beats five other measures
Asian privacy laws obstruct FRTB data pooling efforts
Bank scepticism and regulatory hurdles likely to inhibit cross-border information sharing
Isda: EU position limits to snag few OTC commodity contracts
Narrow definition could exclude certain trades and lead to netting problems
Academic shines light on data mining in alternative beta
Sharpe ratios on complex products fall 73% compared with backtests
Russian central bank slams ruling in $1bn Sberbank swaps case
Lawyers say shock court judgement in ruble options dispute “puts hundreds of contracts at risk”
BoE warns of potential disruption to clearing business for EU firms
Fragmentation of market-based finance could raise costs and risk for EU and UK companies
Compression is your friend, energy firms told as Mifid II nears
Slashing gross notional of trades can keep firms out of reach of incoming rules
Fed weighing VM capital cut for cleared swaps
Powell implies support for practice that saved UBS $300m in capital
Fed paper reignites debate on bank capital ratios
US industry association criticises official analysis suggesting optimal Basel ratios of up to 26%
RBC loses senior op risk managers in wave of cuts
Senior group op risk director and US head of controls and governance among 450 to depart bank
LCH limits substitution to tackle quarterly collateral flight
CCP clamps down on bond-for-cash switches driven by reporting and quarter-end repo spikes
Experts dismiss research showing flaw in value strategies
Academics who argue quant value strategies select companies with inflated accounts miss the point, say industry players
ECB requests powers to regulate CCPs
Brexit heightens concern over importance of central counterparties
People: Bowen to depart CFTC, Giancarlo sits nomination hearing
Changes at the CFTC; Evolution Markets launches US natural gas basis brokerage; CHS elects new CEO
Fed examiner calls on banks to rethink KRIs
Most banks fail to establish explicit link between KRIs and identified risk exposures
US dealers wade into European CCP relocation debate
CFTC hearing warns of increased margining costs and a pre-Brexit client onboarding crunch
Banks move to model smaller op risk losses
Credit Suisse is using scenario analysis to model the risks associated with internal fraud losses
Lawyers divided over Isda’s China netting memo
New legal guidance spells out how close-out netting may be achieved, but critics say it’s impractical
OCC warns on cyber risks from subpar patches at US banks
Regulator says banks have good track record overall, but exams reveal weaknesses