Derivs - Credit

Banks will be required to hold more capital against exposures to central counterparties should a draft regulation from the European Commission be enacted.

Rep. Scott Garrett, R-N.J., vice-chairman of the House Budget Committee, criticized the lack of coordination between the Commodities Futures Trading Commission and the Securities and Exchange Commission on regulation at the SEFCON III conference in New York today.

Notional outstanding over-the-counter derivatives have decreased over the last six months, with the total down 1% to USD639 trillion by the end of June 2012, according to the Bank for International Settlements.

Futures broker Newedge has hired Daniel McGowan, former managing member at consultancy firm Sino Ventures in Philadelphia, as its new China chief representative in Shanghai.

The European Securities and Markets Authority has appointed Giuseppe Vegas, chairman of Italian regulator Commissione Nazionale per le Società e la Borsa, as chair of the Post-Trading Standing Committee.

NYSE Euronext has hired Demetria O’Sullivan as chief risk officer of its new London clearinghouse NYSE Clearing.

Société Générale is advising investors to buy credit default swaps on a basket of low beta names against the iTraxx Main.

The Markets in Financial Instruments Directive could restrict investor choice in negotiating financial contracts on trading platforms and discourage the establishment of organized trading facilities, according to market officials.

David Gladstone, executive director and distressed debt and credit trader, and Kar Seng Yee, a credit trader at Morgan Stanley in Hong Kong, have left the firm.

The Royal Bank of Scotland in South Korea is gaining increased interest from investors in so-called maze notes.

Belgium’s Financial Services and Markets Authority is to wait on regulatory developments in Europe before pressing ahead with regulation covering the distribution of so-called complex structured products to retail investors.

The Federal Court of Australia’s ruling against Standard & Poor’s in case over a synthetic securitization could spark cases in other common law countries.