Risk magazine
HSBC strategy chief warns of dangers of 'over-regulation'
Regulators must be careful not to damage the profitability of the financial services sector by excessively increasing capital and liquidity requirements, according to Antonio Simoes, group director of strategy at HSBC.
Cebs publishes guidelines on liquidity buffers
Financial institutions must hold substantial buffers of liquid assets such as cash to enable them to get through a period of at least one month of liquidity stress, according to new guidelines published by the Committee of European Banking Supervisors …
Q&A: Ceiops' secretary-general supports EC reforms
In an interview with Risk , Carlos Montalvo Rebuelta, secretary-general of the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops), backed the European Commission's plans to replace it with a new supervisory authority that…
EU derivatives plan welcomed, but lacks detail
Market participants have expressed support for the European Commission's communication on over-the-counter derivatives, published on July 3, but called for more solid research on some of the policy proposals in the report.
Almost all SIV assets now sold off, Fitch says
The structured investment vehicles (SIVs) at the heart of the credit crisis have now disposed of 95% of their $400 billion in assets, according to analysis released today by credit rating agency Fitch Ratings.
UBS merges quant group
UBS has merged its fixed income, currencies and commodities (FICC) and equity quantitative analysis teams, bringing them under the umbrella of the newly created investment banking (IB) quantitative analysis group, according to a leaked internal memo.
CDS premiums boost option participation in structured products
Participation rates and coupons in structured products are being boosted by premiums from credit default swaps (CDS) sold on sovereign and corporate entities, say dealers.
NYSE Liffe’s CDS clearing platform in doubt
The central clearing service for credit default swaps (CDS) offered by London-based derivatives exchange NYSE Liffe is “under review”, an official at the firm told Risk .
EC looks to move standardised OTC derivatives onto exchanges
The European Commission (EC) today served notice of its intention to push standardised over-the-counter derivatives onto regulated exchanges, in a move that could prove unpopular among dealers.
Negative repos distort dividend hedging strategies
Abnormally low repurchase rates are forcing banks to hedge their dividend exposures with swaps instead of forwards.
Credit starts to flow, but more defaults ahead
Although credit availability has improved and lending costs have dropped in the UK, the rise in defaults is set to continue, according to the Bank of England's latest survey of the lending markets.
Finra scrutinises muni-bond market; US Treasury creates Consumer Financial Protection Agency
The US Financial Industry Regulatory Authority (Finra) has launched an investigation into financial institutions' underwriting derivatives contracts used by US municipals to finance debt at lower costs.
Difference of opinion emerges on CDS fixed coupons in Europe
European credit derivatives traders remain divided on the number of fixed coupons that should be used for the trading of credit default swaps (CDS), just two weeks after the market was supposed to have switched to using only four standardised coupons.
CMBS re-Remics could make Talf obsolete
A wave of downgrades to highly rated commercial mortgage-backed securities (CMBS) is threatening plans by the US Federal Reserve to rehabilitate the market for existing deals. But a recent trend towards restructuring the transactions could render the…
FSA expects final operational changes by October
Changes to the UK Financial Services Authority's (FSA) operational structure, prompted by failings in its supervision of Northern Rock, are due to be complete by October 1, the regulator said today.
CDS spreads tighten on European insurers
The cost of credit protection fell on European insurance firms in early trading today, while remaining steady from yesterday on financials.
Progress slow on standards for Islamic derivatives, AAOIFI chief warns
Concerns over the nature and use of derivatives are hindering the development of a standardised agreement for sharia-compliant contracts, said Mohamad Nedal Alchaar, secretary-general of the Accounting and Auditing Organisation for Islamic Financial…
New special resolution head at Bank of England
Andrew Bailey has been appointed head of the Bank of England's Special Resolution Unit.
Forex realignment
Many company treasury departments were slow to respond to rising volatility in the foreign exchange market, along with a shift in the direction of the US dollar last year. Are corporates changing their hedging policies in response? By Peter Madigan
Get connected
Regulatory demands for the derivatives industry to improve operational efficiency have become increasingly stringent in the past year. To meet the targets, dealers say interoperability between technology platforms is vital. But in the competitive vendor…
Trade set and match
The ultimate objective of regulators and participants in the derivatives business is to see submission and matching on the date of trade. How far is the industry from reaching this goal? By Ryan Davidson
Carry in favour?
Long popular among hedge funds, the financial crisis battered the carry trade towards the end of 2008. But despite massive losses stemming from the trade, there is evidence market participants are putting it on again. By Mark Pengelly