Regulation
Trade repositories consider connectivity options
With multiple trade repositories appearing in a number of asset classes, including foreign exchange, market participants are considering how competing repositories should collaborate to avoid data inconsistency. Chiara Albanese reports
Sprint to the finish line for would-be Sefs
With the clock ticking ever closer towards the G-20’s end-of-2012 deadline for implementation of over-the-counter derivatives market reforms, and some of the critical details of those reforms still not fully fleshed out, the scene is set for an almighty…
Guidance on central bank risk management is needed, says BoE’s Fisher
The Bank for International Settlements should provide guidance on best practice for central bank risk management, says the Bank of England’s Paul Fisher
Euro crisis could cause full EU break-up, warns ex-BoE official
John Gieve, former deputy governor for financial stability at the Bank of England, warns of an "explosion" waiting to happen in the EU
China and Australia sign A$30bn currency swap
Australia joins the ranks of central banks with a bilateral currency swap line with China; reflects increased use of renminbi and closer trading ties between the countries
Esma must replicate US Treasury’s FX exemption, says EC official
Patrick Pearson, head of the European Commission unit that drafted Emir, says FX swaps and forwards must be exempt from clearing under Esma standards
Esma: Identifiers key to repository success
Consistent reporting to multiple trade repositories under new OTC regulations will depend on the successful adoption of legal identifiers
Platform rules for OTC markets could decimate smaller players, warn panellists
Single-dealer platforms and smaller market participants will suffer under new OTC regulations, according to speakers at Fix Protocol trading conference
In the public interest?
British Virgin Islands-based foreign exchange brokerage InterForex received a permanent injunction from the CFTC last month for soliciting business from US clients as an unregistered dealer. But the injunction was not in the public interest of preventing…
Spotlight on: Carl James, BNP Paribas Investment Partners
The head of fixed income and foreign exchange dealing talks to Chiara Albanese about the challenges for the buy side that arise from new regulation, as well as the potential value that can be gleaned from algorithmic execution and transaction cost…
European regulators undecided on initial margin rules for uncleared swaps
Counterparties will have to post variation margin on uncleared trades – but questions remain over which firms will have to post and collect initial margin
Esma under pressure to opine on asset-class specifics in Emir
A public hearing on Emir draft technical standards earlier this week leaves market participants with ongoing concerns over asset-class specifics and implementation timeframe
Move to electronic trading will increase hedge fund use of futures
Competition among buy-side companies and repercussions of Dodd-Frank will push hedge funds to trade electronically, says research from Tabb. Futures trading, mainly electronic, will also increase.
FSA: facing up to cross-jurisdiction conflicts
David Lawton, head of market infrastructure and policy at the UK’s Financial Services Authority, talks to Michael Watt
Rule Financial expands to meet demand for expertise on regulation
The consultancy has made three key hires in London and New York, all with an investment banking background
The perils of one-size-fits-all
Regulators need to come up with a calibrated approach to calculating collateral requirements for uncleared derivatives, writes Joel Clark
FX Invest Europe: Banks are retreating from market-making, managers warn
FX investment has become more challenging, as market-making banks facing new regulation have become less willing to take risk
FX Invest Europe: Investors back away from complex trades to avoid regulation
Some buy-side participants are moving away from complex FX options due to the uncertainty of forthcoming clearing and exchange trading regulations in the US and Europe, according to conference speakers
Central bank's credibility was vital to introducing minimum rate, says SNB’s Schlegel
The decision by the Swiss central bank to introduce a minimum rate to the euro last September was possible because of the SNB’s credibility, says the central bank’s head of foreign exchange and gold
Margin rules for uncleared FX rest with regulatory working groups
Regulators must adopt a calibrated approach to mandated collateral so that short-dated FX swaps and forwards are not caught up in the rules unnecessarily, argue market participants
Singapore’s FX exemption welcomed as a sign of global consistency
A proposal by the Monetary Authority of Singapore to exempt FX swaps and forwards from mandatory clearing is seen as a positive move to harmonise treatment of FX with the US
Emir clearing rules agreed, but calls grow for extension to Esma deadlines
Delays in the adoption of Europe's new clearing rules have eaten into the time Esma has to meet its June 30 rule-writing deadline
Afme liquidity conference: Buy side urged to stand up and be counted on regulation
Speakers at Afme conference call on buy-side firms to join the sell side in lobbying regulators and ensuring the future market structure is appropriately calibrated
Afme liquidity conference: Costs of FX clearing will be punitive for all
The cost of implementing FX clearing and reporting services will be too high for more than a handful of top-tier banks to do it effectively, creating the possibility that demand might not be matched by supply, FX bankers warn