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◆ Public sector issuers embrace hedge fund bid... ◆ ... as they flex in the swap market ◆ Car makers welcomed back to bond market
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New contracts cannot yet be traded in US
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  • The China National Association of Financial Market Institutional Investors will develop a pricing benchmark and standardized documentation for onshore credit derivatives.
  • Scott O’Malia, a member of the U.S. Commodity Futures Trading Commission, warned that derivatives regulations being developed will fail if they are so rigid that they “create a market structure that fractures liquidity and creates an incentive to utilize dark pools, simply because our rules do not provide the flexibility necessary to facilitate on- exchange transactions.”
  • The American Benefits Council and the Committee on Investment of Employee Benefit Assets have expressed concern that a private derivatives regulatory group headed by the Federal Reserve may weaken regulations under the Dodd-Frank Act.
  • There are hints that the European Union member states may be pressing the E.U. to extend proposed regulations of the over-the-counter derivatives market to the entire derivatives sector.
  • The U.S. Commodity Futures Trading Commission plans on setting position limits based on data it expects to collect under a proposed swap trader’s reporting ruling, according to Dan Berkovitz, general counsel at the CFTC.