Derivs - Regulation

Republican members of the House of Representatives plan to introduce legislation that would delay the deadline for regulations from July until December 2012.

An increased level of intrusion by financial service regulators may not necessarily lead to more effective supervision, according to Eraj Shirvani, a board director at the International Swaps and Derivatives Association and head of fixed income for Europe, Middle East and Africa at Credit Suisse.

Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, said the swap rules being written under the Dodd-Frank Act will “bring tangible benefits to the real economy.”

The International Swaps and Derivatives Association is calling for the industry to establish a standardized way of representing centrally cleared or electronically traded derivatives, and a central registry to collect and disseminate that information.

Scott O'Malia, commissioner at the Commodity Futures Trading Commission, questioned the commission’s margin proposal that seems to require individual segregation of customer margin accounts for over-the-counter derivatives.

PRAGUE -- The European Securities and Markets Authority will determine which derivatives entered into before clearing was required will be forced into the regime and required to post margin, according to the latest European Council paper seen by Derivatives Week.

PRAGUE – Buysiders and sellsiders are fretting over a Commodity Futures Trading Commission idea floated Monday which has been interpreted as requiring both initial margin and variation margin to be held by third party custodians.

Renaissance Capital has named Yavuz Uzay as head of Turkish equity research.

OCC has entered into agreement that establishes MarkitSERV as a trade source and middleware provider for over-the-counter equity derivatives trades that OCC would clear.

The Department of the Treasury is “very close” to reaching a decision on whether to exempt fx swaps and forwards from derivatives regulations, according to Mary Miller, assistant Treasury secretary.

The provision of the Dodd-Frank act that would force investment banks to spin off their derivatives trading may result in more foreign firms reorganizing their operations than their U.S. counterparts, according to Daniel Trullo, a governor of the Federal Reserve Board.

By Eric Kolodner, managing director at Tradeweb in London The Council of the European Union and the European Parliament will shortly determine various issues in the European Market Infrastructure Regulation that will have a profound impact on the extent to which regulators will achieve their stated goals of reducing systemic risk, fostering competition and promoting price efficiency in the derivatives markets.