Derivatives
Banks could circumvent Volcker rule by gaining hedge fund exposure synthetically
Volcker rule may contain loophole that allows banks to invest in hedge funds
The impact of regulation on the global OTC market
Three web seminars – in Hong Kong, London and New York – exploring key changes in international OTC derivatives regulation from a regional perspective
ECB's Constâncio: grant CCPs access to central bank liquidity
WASHINGTON, DC – Central counterparties for derivatives trades should have access to central bank liquidity, Vítor Constâncio, the vice-president of the European Central Bank, has said.
Ban on rehypothecation could increase derivatives costs
Investors have become more aware about the security of collateral since the collapse of Lehman Brothers. A number of hedge funds are now insisting margin posted on derivatives trades is not rehypothecated – a trend that could drive up costs. By…
Future of OTC operational commitments under review
OTC derivatives legislation prompts rethink of industry letters to the New York Fed
Let CCPs compete, Isda conference told
Competing for business will not fatally undermine derivatives clearing – as long as the system is well regulated, speakers claim
SGX AsiaClear aims to be Asia's CCP for rates and FX swaps
SGX president Muthukrishnan Ramaswami says the new interbank OTC clearing service for Singapore and US dollar interest rate swaps will target Asian banks as a start, and soon global investment banks that trade with Asian counterparties. Asian local…
Service outage hits Barclays Capital's first OTC clearing client
Client clearing glitch highlights the complexity of what is expected to be a major new business.
Dodd-Frank passes but leaves questions unanswered
Financial reform legislation passes in the US Senate, as focus turns to the complex issue of implementation
Dodd-Frank: forex swap clearing exemption at Treasury secretary’s discretion
Blanket FX exemption dropped from final bill; Treasury to determine issue
Trading Places, June 21, 2010
Read this week's Trading Places to catch up on people moves across the FX world.
Corporates should be forced onto central counterparties – BIS
Central counterparties are wrongly perceived as being more expensive than OTC transactions, says a leading economist.
Korea moves to restrict FX derivatives leverage
Bank of Korea and Ministry of Strategy and Finance cut back leverage caps and limit corporate hedging of currency risks to 100% from 125% of exposure
EC derivatives consultation stops short of detail on corporate exemptions
BRUSSELS - A consultation paper on derivatives markets infrastructure published on June 14 by the European Commission gives extensive detail on requirements for central counterparties (CCPs) that clear over-the-counter derivatives, but has stopped short…
Germany backtracks on currency derivatives ban
BONN – The German government has reversed on a proposed ban on currency derivatives and equity derivatives.
German short-sell ban snares long euro FX derivatives
Long euro derivatives positions caught up in proposed legislation, while doubts remain over the exemption of market-makers
Naked euro currency swaps face same fate as CDSs in Germany
Germany broadens shorting ban scope
Controversial swaps legislation survives as US Senate passes bill
WASHINGTON, DC - Foreign exchange swaps and forwards counterparties are being included in new rules blocking swaps dealers and major swap participants from federal government support.
BIS: FX derivatives notionals grew slowly in late 2009
The BIS reported a small increase in total outstanding FX derivatives in the second half of 2009.
CIBC adds to corporate solutions group
TORONTO – CIBC has hired Douglas Jones as executive director in the Corporate Solutions Group (CSG) in Toronto.
Sovereign debt and LatAm-related hedging key for Spanish dealers
Spanish dealers explain how hedging related to sovereign debt issuance and Latin America will be key revenue sources in 2010
Milan derivatives fraud trial hinges on banks' sums
Technical arguments over derivatives valuation will determine the fate of the four banks facing an Italian mis-selling trial in May.
Greek woes revive seven-year old Goldman swap story
The Greek debt crisis has refocused attention on a controversial swap trade first reported by Risk in 2003. The deal, completed with Goldman Sachs in 2002, effectively allowed Greece to borrow roughly €1 billion without adding to its public debt figures…