News
European OTC client-clearing docs arrive after nine-month delay
Complete agreement proved impossible, but participants see new legal template as a good base for negotiations, Isda says
Fails could jump as category two clearing starts in US, FCMs warn
Hundreds more firms will be required to start clearing in the US today, and FCMs are warning there could be an increase in rejected trades as a result
Year-end ‘congestion’ looms for European trade reporting
Buy-side must prepare to meet their FX reporting obligations in Europe, which will be more challenging than in the US, webinar participants warn
AIA cautions NAIC on US Orsa guidance
Requirements should not be made too prescriptive, says trade association
Regulation, tax and technicalities recast European turnover, as French volumes plummet and Italian activity recovers
Tax, legal and practical reforms to the way structured products are transacted in France have slimmed the market to a slither, while similar changes have proved a spur to the Italian structured products revival
Romero: Sigtarp prosecutions set for the long haul
Special inspector general says agency to stay until at least 2020
Asian firms not likely to be compliant with cross-border Dodd-Frank on July 12
Many financial institutions in Asia would not be in a position to comply with Dodd-Frank cross-border applications should the CFTC’s exemptive order expire on schedule on July 12
OTC Derivatives Clearing Summit: Capital burdens could weigh on swap futures
Lower margin levels for swap futures could drive up risk-weighted assets for dealers, and erode the product's advantage, panellists argue
OTC Derivatives Clearing Summit: Clearing incentives "are not there" - Goldman's Frankel
Regulators want capital and margin rules to encourage central clearing, but analysis suggests costs may currently be higher in the cleared world
Risk Japan: Basel securitisation reform creates ‘perverse incentives’
Inconsistent rules are damaging financial intermediation, says senior Japanese banker
Banks tout alternative to calculate CCP default fund capital charge
Dealers push for a more risk-sensitive model, but regulators may opt to incorporate a new non-internal modelled approach into the existing hypothetical capital method
Swedish insurers warn of manipulation threat to new discount curve
Concerns Solvency II-based risk-free curve could be distorted by speculators as market begins to adjust ALM hedges
US public utilities take CFTC fight to Congress
Frustrated by inaction at the CFTC, public utilities champion new law on Dodd-Frank special entities threshold
HKMA and RBA voice fears over Iosco benchmark proposals
Responses to Iosco's Principles for Financial Benchmarks reveal concerns that many markets will not be able to support transactions-based rates; RBA questions 'lexicographic hierarchy'
OTC Derivatives Clearing Summit: Some non-US dealers leaving buy-side trades unreported
Citadel and Fortress have found some foreign banks unwilling to accept Dodd-Frank reporting rules, conference hears
OTC Derivatives Clearing Summit: Bank examiners will push dealers away from bespoke trades, says Fed
Supervisors should ask dealers to prove they are favouring standardised products, says Fed official
OTC Derivatives Clearing Summit: SEC, Fed promise reform progress
Supervisors respond to buy-side fears of multiple regulatory masters
Fears volatile model warning indicators could lead to unjustified action
UK regulator urged to reconsider proposed early-warning indicators to reflect better changes in economic conditions and not penalise insurers’ de-risking strategies
Lack of CSAs restricts forex hedging options for Australian institutions
Returns for hedging via long-term cross-currency swaps are attractive, but few are able to do so because of the lack of credit support annexes in place
PineBridge appoints CIO for Mena and Turkey team
People moves
ACI to develop new spot FX standards
Industry association plans to complete project by year-end to bring greater clarity to the definition of spot FX across currencies and geographies
Low Brent creates window of opportunity for hedgers, say analysts
Brent crude oil offers a window for airlines and refiners to lock in prices, but opportunity won’t last forever, say analysts
IASB eases fears over hedge accounting for CCP novations
Standard-setter decides trades can still qualify for hedge accounting when voluntarily novated to a CCP, but experts warn wider stance on novation could cause trouble
SEC estimated value guidance causing concern among investors
Banks providing the estimated value of structured notes in accordance with SEC rules are facing questions from investors about the level of their estimates