As expected, the SEC has voted to propose new derivatives rules that would limit leverage and other risks for mutual funds, exchange-traded funds (ETFs) and other registered investment companies in the derivatives markets. After a 90-day comment period, the commission is likely to move forward on the new rules. New rules are needed, the commission… Read More >>
Swaps Clearing in Europe Catching Up to U.S. Rules
The European Union has set the date for its clearing obligation, bringing European financial reform more into line with current U.S. obligations. The publication of the European Securities and Markets Authority’s (ESMA) regulatory technical standards (RTS) in the Official Journal of the European Union on December 1, 2015 will kick over-the-counter (OTC) derivatives clearing into… Read More >>
Fears Grow Over High-Impact Attack: DTCC Survey
Risk Managers’ Fears Grow Over High-Impact Event: Survey Fears over the threat of “a high-impact event” is increasing among risk managers, according to the latest DTCC Systemic Risk Barometer Survey. The new survey on risk trends among those in the financial services industry shows that 61 percent of risk managers “believe the probability of a… Read More >>
Investors Still Like Sell-Side Salespeople
An interesting report on how investors still rely on sell-side advice and interactions even while swap trading is moving quickly to electronic platforms slipped past me, but it’s worthy of belated notice. The report (issued late last month) from Greenwich Associates, “Interest-Rate Derivatives Sales: Not What It Used To Be, But No Less Important,”… Read More >>
Whirlwind Continues as Standard Chartered Exits Derivatives, Convertible Bonds
Standard Chartered continues to embrace major changes as bank officials announced that the 150-year-old firm is exiting the businesses for equity derivatives and convertible bonds as part of a strategic exit of the institutional cash equities, equity research and equity capital markets efforts underway since this past January. In a prepared statement, bank officials say… Read More >>
GLEIF’s New Rules May Reject Current LEI Issuers
The Global Legal Entity Identifier Foundation (GLEIF) will be taking over the accreditation process for organizations that issue Legal Entity Identifiers (LEIs) via a new program that supersedes the efforts of the LEI Regulatory Oversight Committee (LEI ROC), say GLEIF officials. However, the new accreditation process is retroactive and could mean that some of the… Read More >>
ISDA and ICE Take On Margining for Non-Cleared Derivatives
A key subsidiary of the Intercontinental Exchange (ICE), the owner of NYSE and other exchanges, has been tapped by the International Swaps and Derivatives Association (ISDA) to help market participants meet new margining rules for non-cleared derivatives through the usage of a crowdsourcing utility. By reaching out in this way, the ICE Benchmark Administration (IBA)… Read More >>
New Collateral Management, Margining Rules to Sting as Regulation Takes Hold
Securities firms are going to feel over the coming months multiple stings of regulation via Dodd-Frank, the EU’s European Market Infrastructure Regulation (EMIR) legislation and Basel III that will cause collateral management and margining requirements and calls to skyrocket. So says industry veteran Ted Leveroni, chief commercial officer for DTCC-Euroclear GlobalCollateral Ltd., a joint venture… Read More >>
CFTC Gives Eurex Clearing More Time for DCO Bid
The CFTC’s Division of Clearing and Risk is giving Eurex Clearing more time in its bid to become a derivatives clearing organization (DCO). The division extended the no-action relief granted in CFTC Letter 14-156 to Eurex Clearing AG (Eurex Clearing) and its clearing members that are U.S. persons (U.S. clearing members), CFTC officials say. With… Read More >>
LSEG, DTCC Join Forces for MiFIR Reporting
The DTCC and the London Stock Exchange Group (LSEG) are partnering to provide clients with a connection to regulatory reporting technology vendor UnaVista’s Approved Reporting Mechanism (ARM), a service that enables DTCC clients to comply with the Markets in Financial Instruments Regulation (MiFIR) reporting requirements, officials say. UnaVista is the LSEG’s hosted platform for matching,… Read More >>
