Regulation
AIFM directive unlikely to cause significant changes in Cayman
The Cayman Islands Monetary Authority has opened negotiations with Esma on a co-operation agreement on the EU’s AIFM directive. Separately, its consultation on hedge fund directorships has closed
Depositors will trust EU guarantee despite Cyprus, says BdF official
Policy-makers have incentive to accelerate deposit guarantee plans, says Sylvie Matherat of the Banque de France
Trade reporting hits hurdles as regulators overwhelmed by data
The CFTC last week admitted it is having trouble making sense of the masses of OTC derivatives data now being reported to repositories, casting doubt on the stability of the new reporting regime
Rolling spot faces inclusion in Dodd-Frank
FX spot is expected to be exempt from US clearing and exchange trading rules, but rolling spot could be classified as a CFD and so included within the scope of Dodd-Frank
CFTC ‘neglect’ of Sef rules angers platform providers
After missing numerous deadlines to finalise the criteria for Sefs, the CFTC will not publish the rules until late April at the earliest, much to the frustration of market participants
Complexity and costs of clearing continue to cause concern
Mandatory clearing of OTC derivatives could lead buy-side firms to leave a greater portion of their risks unhedged, warn speakers at a buy-side conference in London
Corporates await final Dodd-Frank details as deadline approaches
As Dodd-Frank deadlines loom for corporate derivatives users, treasury desks with sophisticated FX hedging programs should be steadily adapting compliance systems. But with regulatory energy focused on swap dealers, corporates are still waiting for…
Diverging regulation greatest threat to FX market, say clearers
Speakers from LCH.Clearnet and CME Group at Bloomberg event say differences in regulatory approaches in the US and EU are the biggest threat to growth in FX
MAS warns on fragmented clearing and reporting
Asian financial markets have made progress in setting up CCPs and trade repositories, but greater harmonisation is needed across borders, Singaporean regulator warns
Banks claim €300 billion hole in margin study
Banks call for Basel Committee and Iosco to re-run study on impact of uncleared margin rules after errors emerge
Nalm 2013: Debate rages over how to manage expanding reserves
Central banks enter into new asset classes and alternative currencies but Bank of Israel’s Andrew Abir rejects value of renminbi as a reserve currency
Central banks grapple with risks arising from FX reserves
Holdings of foreign exchange reserves at central banks has increased since the crisis, and market participants believe diversification into new currencies could now pick up
BoJ's inflation target unattainable, says Nomura
Panellists at Bloomberg event yesterday debated whether the yen will continue to weaken as the Bank of Japan pursues an ambitious 2% inflation target
Fenics partners with Traiana for post-trade connectivity
Fenics Software will use Traiana's Harmony network to connect its clients to trade repositories and central counterparties as mandatory reporting and clearing looms
FxPro exits Australia as retail rules come into force
Margin foreign exchange brokers in Australia come under increasing regulatory pressure
Bank of England swap line expected to fuel RMB growth
The creation of a swap line with the People's Bank of China should lead to greater confidence in the offshore renminbi market, according to traders and strategists
Perception of EM risk reduced by central bank safety net - investors
Large foreign exchange reserves held by emerging market central banks makes investing in those countries attractive, say panellists at FX Invest Europe
Currency war scenario ‘exaggerated’, warns senior Swiss economist
Central banks are pursuing domestic priorities and are not engaged in competitive devaluation, says keynote speaker at FX Invest conference
Industry disappointed by Basel persistence on margin
Lobbyists express concern that regulators appear intent on requiring variation margin to be posted against FX swaps and forwards, despite the costs involved
Cometh the hour, cometh the Sef
Imminent rules are expected from the CFTC on the criteria required of electronic platforms seeking to become swap execution facilities under the Dodd-Frank Act
Bank of England to establish RMB swap line
Ten months after the UK government launched an initiative to make London a centre for offshore renminbi business, the Bank of England has started much-anticipated discussions over a renminbi swap line
CFTC's 60-second rule will force rejections, FCMs warn
Given a minute to accept or reject trades for clearing, FCMs warn they will err on the side of caution
Basel Committee and Iosco reopen FX exemption debate
A second consultative document from the Working Group on Margining Requirements gives the industry until March 15 to make its case again for an exemption from mandatory margin
Cyprus cracks whip on margin foreign exchange brokers
EToro settles charges of weaknesses in its organisational structure