Derivs - Credit

The Malaysian Securities Commission and the Oxford Centre for Islamic Studies have floated the idea of a public good standard for Shariah-compliant financial products, including derivatives and structured products.

Citigroup has hired Yann Riou, a Royal Bank of Scotland trader, to trade credit default swaps on financial corporates in London.

Credit risk should be eligible for hedge accounting under the International Accounting Standards Board’s revised take on hedge accounting rules, according to the International Swaps and Derivatives Association.

The volume of exchange-traded derivatives rose by 9% in the fourth quarter of 2010, according to the Bank for International Settlements’ quarterly review.

Tullett Prebon has acquired the over-the-counter credit trading desk of Newedge.

The eurozone’s periphery hasn’t been a major cause of risk aversion for a while. But that has changed this week, with sovereigns once again triggering unease in the markets.

New rules from Markit using the Depository Trust & Clearing Corporation’s trade volume data, along with the latest roll of the Markit iTraxx Europe indices, have resulted in a smaller Crossover index that may be easier to arbitrage, officials say.

The Japan Securities Clearing Corp. is planning to limit clearing member liability for its coming over-the-counter derivatives clearinghouse, according to officials familiar with the process.

Swap execution facilities should not be forced to police position limit violations on their own systems, according to Phoenix Partners Group, the parent company of an interdealer for credit default swaps that intends to register as an SEF.

The Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions released a consultative report this morning asking market participants if central counterparties should be mandated to hold enough capital to cover the credit and liquidity risk of one or both counterparties in a given trade.

Proposed Commodity Futures Trading Commission rules on portfolio reconciliation may a heavy burden if applied to certain international firms, specifically those in Asia, who have only recently begun the practice.

France’s Autorité de Contrôle Prudentiel, which regulates banks and insurance companies, has been quietly imposing stricter rules on regulatory capital trades over recent weeks.