Asian Regulators: CFTC Rule Undermines Stability

A number of Asian regulatory agencies have criticized Dodd-Frank extraterritoriality rules, saying that they could result in market fragmentation and increase systemic risk. The Australian Securities and Investments Commission, Reserve Bank of Australia, Hong Kong Monetary Authority, Securities and Futures...

Citi CEO Comments on Volcker Rule

In the latest salvo in the war between regulators and banks, Citigroup CEO Vikram Pandit lashed out at efforts to dictate what banks can sell to their customers, saying that the risks of such an approach outweigh the benefits. “Safety and soundness is really important,” Pandit said. “But we’ve got to...

Germany Moves to Quickly Implement Basel III

The German cabinet indicated Wednesday that it will introduce Basel III bank capitalization requirements as soon as possible, as the region attempts to recover from a recession that has seen several member states receive bailouts from the EU. The rules are aimed at “toughening banks’ capital requirements...

CME Announces European Derivatives Exchange, Citing ‘Regulatory Choice’

Raising the stakes in the battle over the effectiveness of the Dodd-Frank Act, CME Group will establish a London-based derivatives exchange in order to provide options to market participants looking to escape the impact of new U.S. rules, the firm has said. The CFTC is attempting to prevent traders from...

Asian Banks May Cut U.S. Derivatives Trading to Avoid Dodd-Frank Burden

As Dodd-Frank-mandated rules near their compliance dates, Asian banks are reevaluating their derivatives trading strategy, including whether to shift volume from U.S. to non-U.S. counterparties. Beginning in January, non-U.S. entities who trade derivatives amounting to at least $8 billion in net notional...

Trend Towards Gold as Derivatives Collateral Continues

In the latest response by a clearing house to new rules that are themselves a result the 2008 financial crisis, LCH.Clearnet has announced that it is adding gold to its list of assets that qualify as acceptable collateral for derivatives trades, following a similar announcement last week from CME Clearing...