Derivs - Regulation

A Swiss Financial Market Supervisory Authority idea to amend civil law to increase investor protections has structured product issuers in Switzerland up in arms.

The National Futures Association has started building an infrastructure for overseeing swap dealers in anticipation of being handed some of the regulatory reins for the market.

A proposed rule by the U.S. Commodity Futures Trading Commission that would require trades to be confirmed in a short period of time will create hardships for end users, according to panelists at the Markit Evolving OTC Market Landscape conference in London yesterday.

The China Banking Regulatory Commission has defied market expectations by passing up the opportunity to outline its position on China’s nascent credit derivatives market, reinforcing fears that the market could be shuttered or be subject to a change in rules.

Advisors to major derivative firms are offering different strategies in the wake of Dodd-Frank provisions that pertain to corporate governance and legal structure.

The Basel Committee on Banking Supervision at the Bank for International Settlements today issued its final report giving recommendations on how to align risk and performance through compensation.

A recent announcement from the China Securities Regulatory Commission makes it possible for onshore securities companies in China to create subsidiaries that may trade derivatives–a move lawyers say could change the landscape of the market as it breaks the monopoly held by banks.

Fitch Solutions reported that its credit default swaps liquidity score signals “high levels of uncertainty on the prospects of consumer-services companies,” especially in Europe and North America.

Indian regulators want to expand the types of over-the-counter derivatives available, but will only do so while improving pre- and post-trade infrastructure and consolidating the regulatory regime to promote financial stability, according to Subir Gokarn, deputy governor of the Reserve Bank of India.

Regulators of European Union member states are pressing to keep the power to authorize foreign clearinghouse to operate in the region.

Some of Europe’s largest companies have expressed concern that an effort to implement global financial reform will cost them a proposed exemption found in the European Market Infrastructure Regulation.

CBOE Holdings, NYSE Euronext and Nasdaq OMX Group are setting aside their differences to work together against a Securities and Exchange Commission proposal that would cap fees for on-exchange options transactions. The proposal, introduced by the regulator just over a year ago, suggested a USD0.30 per contract cap on transaction fees based the fee cap on Reg NMS stock in place for equities exchanges.