News/Risk management/Central banks
BIS warns of "enormous risks to recovery"
In its annual report, released June 29, the Bank for International Settlements (BIS) warned worldwide rescue efforts for the financial industry might be inadequate.
Basel changes could "kill off correlation trading”
Proposed changes to the Basel II Accord’s trading book regime, due in early July, will make correlation trading uneconomical unless a compromise can be found, say dealers.
SNB considers restricting size of Credit Suisse and UBS
The Swiss National Bank (SNB) may impose size limits on Credit Suisse and UBS due to "unique" systemic risks in the Swiss financial system, it revealed on June 18.
Obama reform plans show no progress on OTC derivatives clearing
The Obama administration's much-hyped regulatory reform proposals disappointed over-the-counter derivatives dealers and end users yesterday by again failing to provide new details on how OTC markets with mandatory central clearing would operate.
Isda aims to improve collateral management processes
The International Swaps and Derivatives Association’s collateral committee has revealed a set of goals for improvements to collateral management processes.
Isda chief addresses House on OTC derivatives
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EU consults on Sepa migration deadlines
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Industry opposes mandatory clearing
Compulsory central clearing is not a one-stop solution to the problems of the derivatives markets, and could end up crippling the industry, warned speakers at an industry event in London on Tuesday.
OMG commits to new clearing and reporting targets
The Operations Management Group (OMG) on June 2 outlined its latest targets to improve the operational infrastructure of the over-the-counter derivatives industry.
US municipal market faces clean-up under new rules
The municipal bond market in the US is still largely in a state of disarray, well over a year after the collapse of the auction rate securities (ARS) sector, though signs of recovery are visible in the fixed-rated debt market, congressmen have heard.
OTC trade repository plan faces hurdles
Financial authorities in the US and Europe have advocated the introduction of a central trade repository to gather data on the over-the-counter (OTC) derivatives market, but there is concern that multiple repositories could do more harm than good.
BIS shows first OTC derivatives market decline
The total outstanding notional of over-the-counter (OTC) derivatives contracts fell 13.4% to $592 trillion at the end of December 2008, from $683.7 trillion at the end of June 2008, according to statistics released by the Bank for International…
Geithner calls for law change to force OTC derivatives clearing
The US Treasury called upon Congress yesterday to amend the Commodities Exchange Act (CEA) to compel the "clearing of all standardised over-the-counter derivatives through regulated central counterparties".
Bowater worth 15%, according to credit derivatives auction
An auction held on May 12 determined a final settlement value of 15% for credit default swaps (CDSs) referencing North American newsprint manufacturer Bowater, which filed for Chapter 11 bankruptcy on April 16.
EC issues remuneration principles for risk takers
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BoE stability chief: Financial network needs 'rethinking'
The growth of complexity and widespread pursuit of similar products and strategies has created a fragile financial network in need of reform, according to a senior Bank of England (BoE) official.
FSF: Valuation techniques and leverage aggravate pro-cyclicality
Regulators should address the pro-cyclical effects of market-sensitive valuation practices and increasing leverage, according to the Financial Stability Forum (FSF).