Weekly Roundup | International & Mixed Regulation | 4 February 2014
Progress and Peril: Davie, Dodd, Maijoor, Pirrong and More on the G-20 Reforms
Last year was a landmark for the derivatives reforms laid out by the Group of 20 nations in 2009, with clearing, trading and reporting rules all coming online in the US. But it was also just the start of efforts to co-ordinate and align the rules internationally. For that reason, 2014 will be the acid test. Here, 17 politicians, regulators and market participants respond to two key questions: has the US delivered good over-the-counter market reforms, and what are the key challenges now facing Europe? Risk: Progress and Peril: Davie, Dodd, Maijoor, Pirrong and More on the G-20 Reforms.
2013 Recap: OTC Derivatives Regulation's Top 10 List of Notable Events in 2013
From launching a platform for trading USD swaps, to completing production testing with credit hubs for pre-trade clearing certainty, to celebrating the clearing of an inaugural trade under the new regulations, 2013 continued the momentum in the changing OTC swaps markets. OTC Market Subject Matter Expert, Sol Steinberg, reviews his take on the top ten notable events of 2013. DerivSource: 2013 Recap: OTC Derivatives Regulation's Top 10 List of Notable Events in 2013.
The New 2014 Playing Field: Mapping the Impact of Regulation
This time next year, the market is going to be a very different place. No-one knows the complete, consolidated impact of regulation on the market, and many of the parts are still in motion, but the core structure is starting to take shape. RegTechFS: The New 2014 Playing Field: Mapping the Impact of Regulation.
Derivatives Regulation in 2014: Turning Theory to Practice (Kind of)
Legal and technical issues still muddle regulatory compliance with derivatives regulation despite looming deadlines for both trading via SEFs in the US and trade reporting via TRs in Europe. Rob Daly explores these issues and what lies ahead for 2014. DerivSource: Derivatives Regulation in 2014: Turning Theory to Practice (Kind of).
Unlocking Innovation on the Path to Financial Regulatory Reform – Download from Davos
Given the complexity of global financial regulatory reform, there is an overwhelming sense that we need to avoid pitfalls from the lack of innovation investment across the financial industry. Tabb Forum: Unlocking Innovation on the Path to Financial Regulatory Reform – Download from Davos.
Regulators Ease New Bank Rule on Leverage to Aid Economy
Global banking regulators agreed on Sunday to ease the way a new rule, meant to rein in risky balance sheets from 2018, is compiled to try to avoid crimping financing for the world's economy. Reuters: Regulators Ease New Bank Rule on Leverage to Aid Economy.
Canada Bites the Bullet on Trade Reporting
First step aligned with US rules, cross-border harmonisation expected. Dan Barnes explores how trade reporting of OTC derivatives in evolving in Canada. DerivSource: Canada Bites the Bullet on Trade Reporting.
Versions of the Truth; Trade Reporting in Canada
Trade reporting is intended to provide regulators with insight into the market, but how can multiple reporting centres provide a single view? Dan Barnes reports on how Canada is approaching trade reporting across the provinces. DerivSource: Versions of the Truth; Trade Reporting in Canada.
Bankers Assess Once-In-A-Generation Reform
Depending on who you believe, banks have either put the crisis behind them and are about to embark on a long-overdue recovery, or they have been seriously scarred and will limp along for several more years. FT: Bankers Assess Once-In-A-Generation Reform.
US Swaps Trading Rules Have 'Split Market'
New US legislation for swaps trading has dramatically fragmented the transatlantic market in the past three months, with European dealers unwilling to trade with US counterparts and shunning clearing, an industry study has found. FT: US Swaps Trading Rules Have 'Split Market'.
Regulating Derivatives – Teething Problems
It must have seemed like a no-brainer in 2009. Leaders of the G-20 vowed to get control over the huge and opaque world of derivatives blamed by many for precipitating the financial crisis that had engulfed them. Economist Schumpeter Blog: Regulating Derivatives – Teething Problems.
Iosco Secretary-General Slams US and Europe as 'Regulatory Sharks'
Global securities regulator says both entities need to take a longer-term view. Risk: Iosco Secretary-General Slams US and Europe as 'Regulatory Sharks'.
EU and CFTC to Work Together on Cross-Border Regulation
The EU and the CFTC have announced that they will be working together in their implementation of cross-border regulation, after talks in Washington. CFTC Law: EU and CFTC to Work Together on Cross-Border Regulation.
Comment: Risks Remain in G20 Clearing Plan
The G20’s proposal in 2009 to mandate use of clearing as one element of the measures to rein in over-the-counter (OTC) instrument risk is hardly a military matter.
- FT: Comment: Risks Remain in G20 Clearing Plan
- The OTC Space: Thomas Krantz Takes a Pop at Clearing in the FT | Is He Right?
Two New EU Regulations to Add to Your Roadmap in 2014 – SHOULD GO IN EU REGULATION
This alert summarises the key provisions of the proposed Regulation on structural measures improving resilience of EU credit institutions (SBR proposal) and the proposed Regulation on reporting and transparency of securities financing transactions (TSFT proposal). RegTechFS: Two New EU Regulations to Add to Your Roadmap in 2014.
ISDA Master Agreement: First Peek at Section 2(a)(iii) Amendments – No Protocol Spotted Yet
On 31 January 2014, ISDA published a draft of a new Section 6(g) to the 2002 ISDA Master Agreement – a clause that counterparties can use to bilaterally amend the operation of the conditions precedent to be found within Section 2(a)(iii). Regulatory Reform: ISDA Master Agreement: First Peek at Section 2(a)(iii) Amendments – No Protocol Spotted Yet.
Market Fragmentation is Becoming a Reality
The global nature of the derivatives market has long enabled users to manage their risk efficiently. This is something ISDA has championed throughout its history, and it’s been our single biggest concern over the past few years. ISDA derivatiViews: Market Fragmentation is Becoming a Reality.
Transatlantic Tug-of-War Puts European Hedge Funds in "Impossible Position"
Some European hedge funds will be caught between a rock and a hard place when local clearing rules take effect. They are also expected to comply with the US clearing regime, and as things stand, neither jurisdiction is offering a way out.
Looking back: Regulators Try to Slow Down OTC Juggernaut
Today, regulation is a fact of life for OTC commodity derivatives traders. But in April 1994, it was somewhat novel, as Energy Risk reported at the time. Risk: Looking back: Regulators Try to Slow Down OTC Juggernaut.
OTC Break-Up May Reverse – But Only if Rules Mesh Too
The OTC market appears to be splitting along jurisdictional lines – a long-predicted outcome of the timing gaps between regulators. But putting it back together again may not be as simple as waiting for all the rules to fall into place. Risk: OTC Break-Up May Reverse – But Only if Rules Mesh Too.
Cross-Border Vortex: Dealers Freeze Plans to Move Staff
Banks have been quietly planning to move staff from New York to Toronto and London as a way of protecting clients from a new Dodd-Frank trap – but, with the US Commodity Futures Trading Commission now facing a lawsuit and a leadership change, preparations are on hold, and confusion reigns. Risk: Cross-Border Vortex: Dealers Freeze Plans to Move Staff.
Europe and US Watchdogs Align on Derivatives Action
US and European regulators have pledged greater co-operation as they introduce rules to tighten oversight of the global $700tn over-the-counter derivatives market, seeking to diffuse tensions between the two sides. FT: Europe and US Watchdogs Align on Derivatives Action.