Derivs - Regulation

Industry officials fear that some European regulators do not have enough staff to manage the volume of prospectuses that will need to be approved when the amended E.U. prospectus directive takes effect later this year.

Foreign dealers are expected to start joining Japan’s clearinghouse for interest rate swaps after the Japan Securities Clearing Corp. recently detailed plans to cap membership liability payments to the guarantee fund for multiple defaults.

Greece has not yet triggered a credit event and buyers will therefore not receive a payout on credit default swaps, the Europe, Middle East and Africa determinations committee of the International Swaps and Derivatives Association said this morning.

Foreign multinational investment banks in India are sitting on the sidelines in the new credit default swap market. They’re not willing to take on the cost of collateralizing the deals and so aren’t targeting the market in any way, according to market officials.

Market participants seeking clarity on major regulatory decisions in China may have to wait until 2013, as the government grapples with its once-in-a decade leadership transition.

The European Securities and Markets Authority will review structured products distribution next week as a first stage in discussing a pan-European solution for the market.

Indian insurance regulator the Insurance Regulatory and Development Authority is stymieing the use of derivatives for hedging purposes and should move to open up the market to insurance corporate users, according to market officials.

The Wholesale Market Brokers’ Association aims to meet with the European Securities and Markets Authority to push for non-discriminatory access to central counterparties.

The Monetary Authority of Singapore will not require foreign regulators seeking data from its trade repositories to provide indemnification against litigation.

The California Public Employees' Retirement System thinks portfolio managers will increase their use of credit default swaps to reduce economic risk on specific bond positions to deal with volatility induced by the Volcker rule.

The Securities Industry and Financial Markets Association is recommending that prudential regulators implementing the Volcker Rule alter their proposal to continue to allow for customer-focused proprietary trading by recasting proposed “hard-coded criteria” as “guidance” for market participants.

The Securities Industry and Financial Markets Association has called for changes to plans by U.S. exchanges and the Financial Industry Regulatory Authority to revamp market-wide circuit breakers.