News
Nasdaq failure underlines worries over infrastructure resilience
The loss of service at one of the biggest US exchanges emphasises the risk of a failure at key service providers
SG launches UK Four series as survey shows investors expect 7% from FTSE 100
Investors believe 7% is a reasonable return for investing in FTSE 100 but many think it is unrealistic, says survey, prompting Société Générale to launch the UK Four series that aims to exceed expectations with annual returns of up to 10%
Commodity hedgers alarmed by CFTC margin proposals
Margin rules proposed after the collapse of MF Global could dramatically raise the cost of hedging, complain market participants
CDS licence approvals too slow, Sefs claim
Sefs claim their applications for licences to offer single-name and index CDSs are moving at a glacial pace – echoing allegations made by the European Commission
Ada expands EM footprint with Behavior Capital merger
A pair of research-focused hedge fund managers are merging their operations to create a global emerging markets platform
Santander strategic review halts Cater Allen structured product issuance
Santander's UK private banking arm Cater Allen has ceased issuing structured products while a review takes place
WGMR exemption for FX swaps and forwards expected imminently
Final rules on margin requirements for non-centrally cleared derivatives are expected within weeks, including a long-awaited exemption for forex swaps and forwards
Cat bond ‘lite’ structures raise contamination risk and insolvency fears
Investors and lawyers voice concerns about using segregated accounts structure to issue streamlined cat bond instruments
Eurex preps launch of FX options and futures
German derivatives exchange will move into the forex market in October as it aims to compete for volume in listed futures and options
Bitcoin faces pressure over slow transactions
The New York Department of Financial Services has launched an investigation of digital currencies such as Bitcoin, on service-level and money-laundering concerns
DTCC announces executive management shake-up
The Depository Trust & Clearing Corporation has announced a shake-up of its executive management team
Single-name CDS clearing held up by fears over SEC regime
Temporary rules for portfolio margining by clients are set to expire in December. Hedge funds say they will stay on the sidelines until they know what happens next
Divergence fears over insurer resolution proposals
Scope of Financial Stability Board proposals to give supervisors extended powers ‘unclear’
Fed points the finger at weak stress testing by US banks
Major US banks are failing on key risk management tasks, regulator says
Insurers developing internal model risk calibrations for non-standard credit assets
Underlines growing strategic importance of infrastructure bonds and MBS, finds survey
CME default fund contributions likely to rise following CFTC move
A change in CFTC rules could lead to clearing members having to increase default fund contributions at CME and other US CCPs
HMRC grappling with impact of UK bank levy on clearing
HM Revenue & Customs "does not wish to discourage" client clearing business, which is caught by UK balance sheet tax
Dual reporting requirements in Asia cause concern
While Singapore will mandate single-sided trade reporting, regulators in Australia and Hong Kong will follow the European Union’s requirement for dual reporting, leading to concerns among market participants
Lack of suitable hedging options leaves Asian rice exporters exposed
Liquidity and political risk considerations hinder Thai rice producers' attempts to hedge out looming downside risk
Easing of documentary requirements increases onshore renminbi hedging
Easing of documentary requirements increases onshore renminbi hedging
Nikkei falls fail to dent redemption-driven demand for Japan equity-linked notes
Japanese investors are buying equity-linked notes in record numbers, even as the Nikkei comes off its highs. Most of the demand is coming from investors who have had notes redeemed, say banks
"London Whale" will testify against colleagues
Criminal and civil charges against JP Morgan traders show Iksil will co-operate with prosecutors
NAIC calls for coordination of US and international systemic risk regimes
Financial Stability Board's G-Sii regime should be consistent with US Sifi rules, says NAIC chief