Derivs - Interest Rate

The recently-approved new over-the-counter derivative rules from the China Banking Regulatory Commission will open the derivatives market to asset managers as well as dealers, according to a report by Allen & Overy lawyers.

Powers of the European Securities and Markets Authority to decide which over-the-counter derivatives can be cleared are being trimmed even before the pan-European regulator has had a chance to formerly weigh in on the issue.

An all-to-all format of pricing and trading over-the-counter derivative swaps could lead to a flash crash in the interest rates market, according to Peter Fisher, vice chairman at BlackRock.

Regulators need to allow derivative endusers the opportunity to opt-out of utilizing an omnibus style clearing account with its clearinghouse in a swap post-Dodd-Frank, said Roger Liddell, ceo of LCH.Clearnet at TabbForum’s Derivatives Reform: Preparing for Change conference yesterday in New York.

The European Securities and Markets Authority has written to the heads of the Securities and Exchange Commission and the Commodity Futures Trading Commission to express fears over plans for the registration of non-U.S. swap data repositories.

The China Banking Regulatory Commission has approved more lenient rules for the use of credit derivatives.

The Taiwan Financial Supervisory Commission plans to evaluate creating an over-the-counter derivative central counterparty.

Buyside firms are largely unprepared for the post-Dodd Frank over-the-counter derivatives environment and need to work toward a more balanced relationship with the major dealers through technology buildouts and adherence to a new set of industry best practice standards, according to a report.

The International Swaps and Derivatives Association is aiming to shore up a provision allowing a non-defaulting swap counterparty to net out its position and terminate a transaction with a counterparty in default. The industry group has set up a working party to review the master agreement provision after aspects of it have been queried by recent litigation.

Philippe Moryoussef, a former managing director and head of interest rate derivatives at Morgan Stanley, has joined Nomura International in London.

Giving European regulators the power to impose stringent margin calls and demand more collateral could help prevent future crises or at least coordinate regulators’ actions in a crisis, according to a report from the European Securities and Markets Authority, the new pan-European regulator, to its members and European lawmakers.

Bank of America Merrill Lynch sold USD100 million in notes linked to the Dow Jones Industrial Average on Friday, a notional that landed over 50% above what the retail structured product group expected, according to an official at the firm.