Asia Risk/News
Next economic crisis to come from pension funds
Unregulated pension fund industry will be a systemic concern
Starsupply to open renewables OTC derivative brokerage in Singapore
European firm looks to capitalise on increasing demand for palm oil hedging
Corporate deposits used as CVA mitigant
Banks looking to mitigate the new Basel III CVA capital charge – and using corporate deposits as collateral on derivatives is one option, says banker
South Korea to allow local financial institutions to issue covered bonds
Relaxation of restrictions over covered bonds issuance should prompt rapid expansion of sector’s present small base
On the move
On the move
ANZ launches China-centric commodity index
Australian bank unveils commodity index in bid to better reflect China market influence
S$1.5bn capital requirement no bar to incorporating Singapore retail operations
The attractions of Singapore’s retail market means MAS’s requirement for international banks to incorporate their local operations will be adhered to
Risk Japan: Bank of Japan concerned about wrong-way risk on banks’ cross-holdings
Helping banks by purchasing stock will create moral hazard, says Bank of Japan director-general
FX Week China: CNH/CNY forward divergence threat has stabilised
A reversal of the spread between offshore deliverable forwards and onshore NDFs that caused pain for speculators last year is unlikely to recur, say economists
HKMA offers banks RMB repo facility
RMB repo facility established as part of continuing process to internationalise currency and deepen RMB markets
Banks continue to ramp up in offshore RMB
Top-tier banks are continuing to invest in their offshore renminbi trading capabilities, despite the recent dip in Chinese growth and the challenge of persuading clients to use the new currency and boost liquidity
CIMB nabs Royal Bank of Scotland’s Asia Pac CRO
Malaysian bank beefs up its risk management capabilities with recruitment of RBS chief risk officer
On the move
On the move
China abandons early adoption plan for Basel III
China Banking Regulatory Commission drops plans to implement Basel Committee timetable early because of eurozone and domestic growth fears
Second generation volatility ETPs not hamstrung by contango
Second generation volatility products are a much better investment than their previous iteration, according to one hedge fund manager – but buyers previously burnt by this asset class may be tough to convince
Lack of local market-makers hampers the development of Asean ETFs
A reliance on external players is holding back the ETF sector in Malaysia and Indonesia
Asian trade finance at risk from Basel III
Paul Harrald of Standard Chartered tells Asean Risk 2012 conference that Asian banks providing trade finance services will struggle to meet Basel III rules on leverage ratios
Eurozone crisis to have limited impact on southeast Asia – Asean Risk 2012
Resilience in regional markets will insulate Asian nations from any European slowdown, say economists during Asean Risk 2012 roundtable
Asian banks disadvantaged by Basel Accord – Asean Risk 2012
The Basel III Accord has been framed purely to fix the failures in the US and European banking system and is placing an unfair burden on Asian financial institutions, according to speakers at Asean Risk conference.
DTCC looking to ink agreements with other trade repositories in Asia
US firm takes steps to co-ordinate the reporting of OTC trades between different Asian locations
VAR models in Vietnam give ‘false sense of security’
Lack of data for models is a function of Vietnam’s new capital markets – but no reason why the quality of data cannot improve over time, say speakers at Risk Vietnam conference
Asian volatility indexes too illiquid to hedge risk
Asia’s volatility products are not yet liquid enough to draw local investors away from the CBOE Vix
Korea ELW crackdown leaves traders unhedged
Dealers are left unable to hedge ELS positions as liquidity dries up in Korea’s warrant market
Hong Kong securities regulator argues for more control over HFT
The Securities and Futures Commission makes the case for more regulation of high-frequency trading – but the market is not convinced