Over-the-Counter Reform May Harm Asian Markets

Even though Asia has some of the world’s quickest growing economies, their over-the-counter derivative markets may struggle with the upcoming U.S. regulatory deadline. The regulatory overhaul comes about in response to the 2008 market meltdown. One of the major targets of the financial reforms that are to...

Mandatory Swaps Clearing, Says CFTC

The CFTC announced today that swap dealers, major swap participants, and private funds active in the swaps market, are required to begin clearing certain index credit default swaps (CDS) and interest rate swaps that they entered into on, or after March 11, 2013. In a press release, the CFTC stated that the...

Derivatives Exchanges in Turkey to Launch Bourse Istanbul in April

The Istanbul Stock Exchange is working with local gold and derivatives exchanges in April as part of a plan to make the Turkish capital a regional financial centre. Reuters reports that the merger is due to take effect in june, creating a combined entity called Bourse Istanbul. Deputy chairman of the...

FSA Allows CME to Clear Interest Rate Swaps in London

The FSA will allow the CME to clear interest rate swaps, the world’s largest asset class traded by notional value OTC, reports Financial Times. Financial Services Authority The clearance, given by the FSA, will create competition for LCH.Clearnet, a clearing house in the process of being bought by the...

Barnier Issues Letter to EU Lawmakers Concerning Swaps Rules

The European Union’s financial services chief, Michel Barnier, issued a letter asking EU Lawmakers to drop a threat that would block derivatives rules, stating the plan has the potential to harm the EU credibility. According to Barnier’s letter, obtained by Bloomberg News, delaying over-the counter...

The National Futures Association (NFA) Introduces New Board Members

The National Futures Association (NFA), the self-regulating body of the futures industry, has announced new board members resulting from “contested” elections. The list of members of the NFA Board of Directors is as follows:   IB Representative: Jeffrey D. Malec Chief Executive Officer...

SEC’s Walter Sets Loose Agenda for 2013: Cross-Border Swaps are No. 1

New U.S. Securities and Exchange Commission head Elisse Walter set the stage for the commission’s upcoming regulatory year on Friday. Walters placed capital raising, market structure, and issues of extraterritoriality regarding cross-border swaps regulation at the top of the agenda. SEC on Cross-Border...

The Future of Derivatives Data: DTCC, CME and SDR’s

The future of derivatives data hangs in the balance as U.S. regulators deal with proposed Rule 1001, which would allow CME Group to report swaps data from its clients who have their swaps cleared with DTCC. The looming case between DTCC and CME had so far resorted to arguments about transparency. Now, DTCC...

Will High-Frequency Trading (HFT) Get the German Treatment in the U.S.?

German regulators have increased the pressure on high-frequency traders, prompting concerns from the market that the country risks damaging its financial sector. Chancellor Angela Merkel has ordered her government to rein in HFT prior to the establishment of a broader European regulatory regime. As is the...

Libor and Euribor Update: Deadline Looms as Banks Cut Bonuses

The Libor and Euribor indexes are under intense scrutiny as regulators wind down the comment period and prepare to issue new rules that may overhaul the industry in the wake of the rate-rigging scandals. Libor and Euribor Comment Period Nearing End The international task force formed by the International...