Derivs - Credit

The Securities and Exchange Commission and the Commodity Futures Trading Commission are looking at establishing multiple identifiers for transactions as they plot governance of trading on swap execution facilities (SEFs).

Caps on ownership limits for swap dealers on clearinghouses will reduce the interest of dealers in getting involved in creating efficient clearinghouses, Don Thompson, associate general counsel at JPMorgan, told delegates.

Central clearing and the potential of being overregulated in Europe and the U.S. are the main challenges for the credit derivatives market, according to the dealers polled in FitchRatings’ latest credit derivatives survey.

Risk needs to factor in to how regulators define block trades, industry players are saying. Block trades will get to delay reporting and/or fewer disclosure requirements, under new standards.

Legislative proposals for the over-the-counter derivatives market released today by the European Commission lack specific detail and will create uncertainty in the market, according to industry officials.

MF Global has hired Michael Steinberg as managing director and head of Asian equity sales and Gregg Schonhorn as a senior v.p. and co-head of institutional credit sales.

Disclosing too much derivative trade information could expose counterparties, hurting their ability to trade and as a result reducing liquidity.

The credit markets have been focused on the state of the Irish financial system for some time, but more increasingly in the last few weeks.

The National Futures Association and the Commodity Futures Trading Commission are in talks about giving the Chicago-based self-regulatory organization oversight of swap execution facilities, or SEFs.

The City of London, which accounts for 43% of the value of over-the-counter derivatives traded globally, is losing out on attracting financial services startups due to industry fears over the outcome of regulation aimed at derivatives and short selling.

Standard Chartered has hired five senior traders for its Middle Eastern and North African fixed income, currencies and commodities team.

Alessandra Stagliano, a senior corporate credit saleswoman at Citigroup, is set to join BNP Paribas in a similar role based in London.