Derivs - Interest Rate

European Commission officials have played down concerns expressed by the Commodity Futures Trading Commission over a controversial EC proposal that seeks to revise European oversight of foreign clearing houses. The comments garnered a curt response from a senior CFTC official.

The Bank of England has begun a consultation period on the fees that it will charge foreign central counterparty clearing houses (CCPs) for recognition after the UK leaves the European Union.

The clearing arm of Eurex, the German derivatives bourse, is widening the scope of its partnership programme to cover repo and over the counter (OTC) FX markets.

London Stock Exchange Group on Friday announced that it would increase its stake in London-based clearing house company LCH Group by up to 15.1%, bringing its holdings to over 80%.

The Basel Committee for Banking Supervision (BCBS) on Thursday launched a consultation to address a quirk of Basel capital rules reviled by many derivatives clearers.

US Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo has threatened to retaliate over European Commission legislation that Giancarlo thinks would result in “conflicting” and “overly burdensome” regulation from abroad.

The Bank of England has noted progress in the development of the sterling overnight index average rate (Sonia) as an approved alternative reference rate, while also flagging the continued production of long-dated contracts tied to Libor.

Rostin Behnam, a commissioner at the US Commodity Futures Trading Commission (CFTC) flagged potential issues in the governance and risk management of clearing houses (CCPs) on Tuesday.

The International Swaps and Derivatives Association (ISDA) released an updated version of its Model Netting Act on Tuesday. The Act is a guide for legislators looking to properly institute close-out netting rules.

There are more than $512bn worth of bonds that will need to switch to an alternative reference rate if global regulators execute plans to ditch the Libor benchmark by the end of 2021, Linklaters said on Wednesday. GlobalCapital asked the law firm what needs to happen for a successful switchover.

The benchmarking arm of Intercontinental Exchange (ICE) opened an online portal on Wednesday that gives market participants information on alternative risk-free rates designed to replace the Ibors, as well as forward-looking term rates based on the sterling overnight index average (Sonia).

Tuesday’s intervention by the Bank of England into the debate on the future of euro clearing is another welcome move from regulators. The debate has been too long dominated by political noisemaking.