Asia Risk/News
CFTC extends no-action relief for reporting of Asian counterparties
Masking of counterparty name extended to June 30, 2014
Iosco letter to EC ‘strongly recommends’ PFMI standards for non-EU CCP recognition
International frameworks for CCPs should be the primary source of jurisdictional equivalence assessments, according to Iosco's Alder.
MAS benchmark proposals may reduce number of players in SGD market
MAS proposal on financial benchmark setting aims to hold banks more accountable by imposing criminal and civil punishment
Structural barrier to HFT participation in Asia OTC markets
Barriers include a lack of finalised rules and technology for scalable operations
Increased activity in coking coal spot trade raises hopes of a swaps market
The stalled coking coal swaps market may benefit from increasing spot coking coal trade, with more players reportedly belatedly switching over to shorter-term pricing contracts
Risk China: PBoC needs to 'adhere to stability' in managing liquidity risk
China central bank "blind" to potential capital market reaction in its attempts to clamp down on the shadow banking sector
Standardised global regulatory approach creates concentration risk
Current regulatory approach makes further financial crises as "certain as the amen in the church"
Indian accounting rules shield corporates from forex losses
Despite sharp falls in the value of the rupee and large dollar-denominated loan exposures, Indian corporates are not feeling the effect on their balance sheets
OTC clearing presents HFT opportunity in Asia
Over-the-counter clearing to present greater access and profitability to high-frequency trading firms as electronic trading of OTC products gets under way in Asia
Taiwan renminbi bond market unattractive to international investors
Low yields and lack of liquidity are keeping international investors away from the Taiwanese baodao market
US dealers stop trading to avoid breaching China privacy laws
Questions over the ability to report OTC derivatives transactions to trade repositories mean some US dealers have stopped trading with each other
Asian CCPs left to apply ‘in the dark’ for Esma recognition
Asian CCPs under pressure from EU third-country equivalence/recognition deadline squeeze
Citi loses pan-Asian head of equity derivative and convertible sales
Nick Smith appointed as replacement
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
Risk Japan: Basel securitisation reform creates ‘perverse incentives’
Inconsistent rules are damaging financial intermediation, says senior Japanese banker
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'
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
Mandating clearing will have little impact on Australian market development
Australian regulators are looking at whether to mandate clearing of OTC derivatives, but the market is already moving to clear without a mandate in place
Extraterritorial EU legislation likely to be ‘particularly onerous’ on Asia – Asifma
Extraterritorial aspects of European legislation such as Emir likely to be keenly felt by Asian firms, says Asifma
Asean Risk 2013: Use of credit ratings in Basel III provides risk weighting that ‘defies logic’
Economic fundamentals, not credit ratings, should drive Basel III risk weightings, argues CIMB markets head
Australian banks lobby for reduced margin on cross-currency swaps
Current treatment of initial margin on uncleared swaps will cost Australian banks $21 billion
Launch of renminbi clearing in Singapore could spur RMB commodity derivative market
Infrastructure to clear RMB trades in Singapore is now live
China low grade coal ban could push up Asia swaps liquidity
Facing pressure from domestic producers and chronic pollution, China's authorities are considering clamps on low grade coal imports – potentially increasing swap activity
India‘reluctant’ to apply for Esma recognition under current rules
Indian reticence over Emir steps up pressure on EC equivalency regime