Regulation & Clearing

  • Swaptions at risk in €STR transition, warns ECB working group

    Swaptions at risk in €STR transition, warns ECB working group

    The European Central Bank’s private sector working group on euro risk-free rates has recommended market participants replace Eonia products with €STR-referencing derivatives “as soon as possible” and flagged a threat to swaptions in the transition.

  • CFTC’s Behnam urges action on Libor fallbacks

    CFTC’s Behnam urges action on Libor fallbacks

    US Commodity Futures Trading Commission (CFTC) commissioner Rostin Behnam has added his voice to the growing clamour for derivatives market participants to find a solution to fallback issues as they transition away from Libor.

  • BoE’s Woods ‘cautiously optimistic’ on EU-UK clearing agreement

    BoE’s Woods ‘cautiously optimistic’ on EU-UK clearing agreement

    Sam Woods, deputy governor at the Bank of England and chief executive of the Prudential Regulatory Authority, this week said he expects an equivalence agreement between the European Union and the UK to be extended beyond September, as both sides want to avoid a “dramatic” fallout.

  • Santander scores solution for costly undrawn revolver exposures

    Santander scores solution for costly undrawn revolver exposures

    Santander has bought credit protection on two portfolios of undrawn revolving credit facilities, taking advantage of a regulatory decision last year to sharply boost the efficiency of the protection. The deal points the way for banks to cut the costs of providing revolvers, which are usually extended as a ‘loss leader’ for a broader banking relationship.

  • EBA plans to clear up risk transfer tests

    EBA plans to clear up risk transfer tests

    The European Banking Authority will be consulting on its approach to risk transfer by the end of the second quarter, with the treatment of excess spread likely to be a crucial topic for issuers and investors in the securitization market.

  • More calls for lenders to take Libor transition stance

    More calls for lenders to take Libor transition stance

    Corporate debt advisers have joined the call for lenders to make clear their plans for the transition away from Libor, as frustration takes hold among some bank clients that a solution still seems far away.

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