Asia Risk/News
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
Structural issues hindering uptake of electronic trading in India
An increasing appetite for electronic trading by domestic Indian firms is being stymied by issues over market structure and regulatory climate
Hong Kong regulator to allow foreign currency liquid assets to make up LCR shortfall
HKMA backs foreign currency option for local banks struggling to meet Basel III’s liquidity coverage ratio
India state sector banks require $40bn capital infusion to combat Basel III shortfall
India finance minister proposes setting up a financing entity to help raise capital for state-owned banks through bond issuance
Taiwan’s trade repository setting up reporting agreement with DTCC
Taiwan, home to Asia’s first trade repository, is looking to ink a reporting agreement with DTCC
On the move
On the move
HKMA strikes a cautious note on territory’s banking sector
Hong Kong Monetary Authority concerned about continued credit expansion in the territory and contagion risk from the European sovereign debt crisis
Significant longevity issue in China but third-party risk transfer ‘some way off’
China is greying quickly, but low penetration of pensions and life insurance mean little likelihood of a UK-style longevity swap market emerging
Asian institutional investors focus on quantitative risk management
Investors in Asian institutions are catching up with European and North American counterparts in demanding quantitative risk measures and risk numbers as part of their investment mandate, says risk head at AmInvestment Group in Malaysia
Urwin takes top Asia-Pacific role at JP Morgan
Jeff Urwin adds regional responsibilities to existing global position
Australia waiting for international consensus on central clearing
Australia's latest consultation paper outlines only "incremental steps" to central clearing
UK financial chiefs throw weight behind London’s RMB initiative
London will become the next offshore centre for RMB trading, vows UK chancellor George Osborne, supported by banking heads from Bank of China, Barclays, Deutsche Bank, HSBC and Standard Chartered
Use of PIT model neutralises impact of counter-cyclical capital buffer
Banks using a PIT model instead of a TTC model may receive a capital saving for the Basel III counter-cyclical capital buffer but such an approach might not be viewed as within the spirit of the rules by regulators
Bank of Korea to invest in renminbi in 2012
Head of reserve management Heung Sik Choo confirms Bank of Korea will make first investments in Chinese renminbi this year
China raises QFII quota by $50bn to $80bn
Chinese authorities more than double the investment quota available to approved foreign institutional investors wanting to invest directly into China’s restricted financial markets
Korea Investment Corp appoints new chief investment officer
Sovereign wealth fund names Dong-ik Lee as CIO for three-year tenure
On the move
On the move
New Zealand proposes partial earlier adoption of Basel III capital requirements
New Zealand regulators have opted to bring in the capital conservation and counter-cyclical buffers ahead of the Basel Committee schedule – but market participants are unsure if this is necessary
Indian banks to provide Basel III liquidity data in advance of 2013 deadline
Reserve Bank of India tells domestic banks to start reporting aspects of Basel III liquidity strength measures from June this year – ahead of the 2013 reporting timetable outlined by the Basel Committee
Singapore banks lukewarm on covered bonds
Banks in Singapore are unlikely to issue covered bonds in large amounts even if the local regulator’s consultation on the issue is successful
China-focused hedge fund gains on domestic bets
Hedge fund CSV Capital Partners sees Chinese domestic sectors rising even as economic growth slows. The fund backs companies with exposure to the Chinese consumer as retail sales continue to grow
Lack of liquidity in OTC derivatives market must not prevent the creation of a Korean CCP
Maintaining parity with international peers, not derivatives market liquidity, the main criterion for introducing central counterparty clearing, according to the Korean Exchange
Tight regulation a barrier to the development of Korean hedge fund market
Prime brokers speaking at Risk/Return Korea voiced concerns over the potential for regulations to strangle the country’s nascent hedge fund sector