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...

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...

UBS Fined $47.5 Million for Unauthorized Trades; Cantor Fined $700,000

The Financial Services Authority (FSA) has fined UBS nearly $50 million in what amounts to one of the largest penalties ever issued in Britain. The fine stems from unauthorized trades made by Kweku M. Adoboli, a former UBS trader, who caused a multibillion dollar trading loss last year. Last week, Adoboli...

ISDA Chairman Says Keep Libor

The Financial Services Authority is publishing its recommendations for legal changes to Libor on September 28. In advance of the report, ISDA chairman Stephen O’Connor has stated that Libor should be retained in the short- and long-term until a suitable alternative is found. “Libor must continue to be...

FSA Proposes Client Asset Protection Rules

The UK Financial Services Authority proposed new rules yesterday to better safeguard customer funds in the event of a broker bankruptcy. The proposals would allow uncontentious claims to be paid out more quickly by allowing firms to set up “subpools” of similar accounts. They also provide for the...