Derivs - Regulation

The Australian Securities and Investments Commission is recommending new laws that would require retail over-the-counter derivatives players to report 12-month cash flow projections and also increase their capital requirements, according to a proposal paper issued today.

A tight deadline for dealers to comply with a new, more restrictive law for marketing structured notes has left firms scrambling.

The South Korea National Assembly has approved a tax on non-deposit foreign currency liabilities, that could capture foreign currency collateral held against derivatives transactions, beginning Aug. 1.

The latest proposed text of the European Market Infrastructure Regulation from the European Council’s presidency limits clearing obligations to over-the-counter derivatives, running counter to moves by the European Commission and the European Parliament to encompass all derivatives.

South Korea’s Financial Supervisory Service and the Bank of Korea have announced they are adding at least two banks to its inspection of fx derivatives trading—specifically kimchi bonds--and extending the period for the probe.

The International Swaps and Derivatives Association, the International Capital Markets Association and the Association for Financial Markets in Europe have said in a letter that the U.K. regulator should exercise caution before banning any structured products.

Buy-side firms and other end users will face skyrocketing reporting and systems costs if they are caught up in over-the-counter derivatives regulation meant primarily for liquidity providers, according to a report from Aite Group.

The European Commission has launched two antitrust investigations of the credit default swaps market involving 16 banks and other entities

The U.S. Securities and Exchange Commission is planning to make a major examination of exchange traded funds and mutual funds’ use of derivatives a top priority this year, according to Eileen Rominger, director of the SEC’s Division of Investment Management. Click here to read the story from MarketWatch

The Alberta Securities Commission has proposed a rule requiring international and local financial institutions and Alberta-based end users to register as securities dealers if they utilize derivative contracts that are not physically settled commodity contracts.

Banks have lashed out at the Financial Accounting Standard Board over its proposal to eliminate an exemption for derivatives regarding the reporting of gross assets and liabilities.

Credit default swap spreads on European high-yield corporate bonds fell to their lowest level since Jan. 2, 2008.