Dear all,

Happy new year to you all.

I am sure you have big plans ahead of you and are looking forward to what 2014 has in store for you.

What I can tell you is that the dazzling world of derivatives is by far not finished with its uprooting and will keep us busy for some time to come.

So, please stay with me and spread the word of this newsletter.

Best

Tom

New Year Specials

Review of 2013: Grave New World

From collapsing equity repo rates to footnote 88, and from the leverage ratio to new clearing house liquidity rules, the year has been full of surprises, many of them unpleasant. By the end of 2013, an industry that had seemed to be back on its feet was finding out how much more it has to do. Risk staff round up the biggest stories of 2013. Risk: Review of 2013: Grave New World.

2013 Predictions & Prognostications – a Scorecard

After nailing 80 percent of his market predictions for 2012, TABB Group founder Larry Tabb crept out a little further on a limb for his 2013 predictions. And he proved even more prescient. Tabb Forum: 2013 Predictions & Prognostications – a Scorecard.

18 Market Predictions for 2014: Diminished Anxiety and the End of Lean

While 2013 will be remembered as one of the great equity investing years of all time, 2014 will be a better year for the industry, if not for investors. Tabb Forum: 18 Market Predictions for 2014: Diminished Anxiety and the End of Lean.

2013, The Year the Swap Market Changed

2013 has been a momentous year in the swap market. 

• Tabb Forum: 2013, The Year the Swap Market Changed
• ClarusFT: 2013, The Year the Swap Market Changed.

European Regulation

EMIR FOR DUMMIES!

The trade reporting part of the European Market Infrastructure Regulation (EMIR) will come into force on 12 February 2014. From this date onwards, all derivative contracts (be they OTC or exchange traded derivatives) are required to be reported to a Trade Repository (TR). Treasury Peer: EMIR FOR DUMMIES!

ESMA Clarifies Reporting of On-Exchange Derivatives

The European Securities and Markets Authority (ESMA) has published guidance on how reporting obligations in the European Markets Infrastructure Regulation (EMIR) will apply to exchange-traded derivatives.

• FTSE Global Markets: ESMA Clarifies Reporting of On-Exchange Derivatives
• The OTC Space: ESMA Clarifies Reporting of On-Exchange Derivatives Under EMIR | Esma
• Regulatory Reform: ESMA Updates EMIR Q&A.

EU Commission Updates EMIR FAQ

On 18 December 2013, the EU Commission published an updated FAQ document on EMIR (last updated on 8 February 2013). Regulatory Reform: EU Commission Updates EMIR FAQ.

Newsflash: ESMA and EC EMIR Reporting Update

Just in time for your holiday, December has seen a cascade of reporting work from ESMA and the EU Commission on EMIR. RegTechFS: Newsflash: ESMA and EC EMIR Reporting Update

Emir – Warm Up Completed, Ready to Report?

Timely confirmation, portfolio reconciliation and dispute escalation obligations were the warm up for Emir, next is trade reporting, clearing and bilateral margining, writes Gunnar Stangl of Commerzbank. Futures & Options World: Emir – Warm Up Completed, Ready to Report?

A Guide to the EMIR Trade Reporting Obligations – Part 2

Time has come to move on to EMIR Trade Reporting – Part 2 (EMIR Trade Reporting Part 1 is here). Before I get into detail, there are some valid points that I received from Carsten Kunkel, Tom Riesack and Ricky Maloney that I wish to encompass in this post. The OTC Space: A Guide to the EMIR Trade Reporting Obligations – Part 2.

Frontloading Fears Remain Despite Esma Guidance

Uncertainty has been narrowed by Esma Q&A, but dealers say they will still face pricing headaches. Risk: Frontloading Fears Remain Despite Esma Guidance.

EuroClearing Houses Voice Concerns on EMIR Trade Reporting

The European Association of CCP Clearing Houses (EACH) has published a paper on trade reporting under the European Markets Infrastructure Regulation (EMIR). FinExtra: EuroClearing Houses Voice Concerns on EMIR Trade Reporting.

European Trade Reporting: Competitors Emerge Ahead of Compliance Deadline

The emergence of an independent trade reporting company aimed at corporate and buy-side accounts in Europe is the latest sign that the market is finally gearing up for implementation of regulations aimed at derivatives trades. Tabb Forum: European Trade Reporting: Competitors Emerge Ahead of Compliance Deadline.

Traders Struggle to Meet European Reporting Deadline

Fund managers, banks, investors and corporations trading in Europe are struggling to meet a deadline in five weeks’ time for mandatory reporting of all their trades to regulators. FT: Traders Struggle to Meet European Reporting Deadline.

Swiss Banks Fear Being Shut Out of EU Market

An impending overhaul of European Union financial trading rules could further sour already-shaky relations with Switzerland whilst also triggering a collision course between Swiss banks and champions of consumer rights. Swissinfo: Swiss Banks Fear Being Shut Out of EU Market.

Wealth Management Association Wins EU Battle Over MiFIR Trading Reg

The Wealth Management Association has won its battle to have a piece of EU regulation regarding share trading for individual investors overturned, Fundweb can reveal. Fundweb: Wealth Management Association Wins EU Battle Over MiFIR Trading Reg.

Mifid II Suffers Setback in Crunch Talks

Regulators have failed to reach agreement on key rule changes to Europe's securities markets under a revised version of the Markets in Financial Instruments Directive, fuelling fears that time is running out to finalise the text before European elections next year. Financial News: Mifid II Suffers Setback in Crunch Talks.

All I want for Christmas

It seems there’s to be no early MiFID II Christmas present as agreement on the Level 1 text slips into 2014. Publication of the final text is now hotly anticipated to be in January or February next year at the latest, to avoid running into the European parliamentary elections in May. Regulation Matters Fidessa Blog: All I want for Christmas.

Crunch Time for Exchanges’ ‘Vertical Silo’ as EU Rules Finalised

After three sometimes interminable years, Europe stands on the brink of agreeing its flagship financial markets legislation. FT: Crunch Time for Exchanges’ ‘Vertical Silo’ as EU Rules Finalised.

EU to Seek Deal Next Week on Overhaul of Financial-Market Rules

European Union lawmakers and national officials will make a renewed attempt next week to clinch a deal to overhaul the bloc’s financial-market rulebook. Bloomberg: EU to Seek Deal Next Week on Overhaul of Financial-Market Rules.

EU FTT – It’s “Alive and Deadly” Apparently

Last week, the House of Lords EU Committee released a further paper entitled Financial Transaction Tax: Alive and deadly. RegTechFS: EU FTT – It’s “Alive and Deadly” Apparently.

EU Would Accept Watered-Down Transaction Tax – Paper

The European Union's Taxation Commissioner has said he is prepared to accept a more limited tax on financial transactions, following concerns from some countries that the scope of the original proposal was too wide. Reuters: EU Would Accept Watered-Down Transaction Tax – Paper.

EBA Publishes Draft ITS on Hypothetical CCP Capital

On 19 December 2013, the European Banking Authority (EBA) published final draft Implementing Technical Standards (ITS) on the hypothetical capital of a central counterparty under Articles 50a, 50c and 89(5a) of EMIR, as amended by Article 520 of the Capital Requirements Regulation (CRR). Regulatory Reform: EBA Publishes Draft ITS on Hypothetical CCP Capital.