Derivs - Regulation

PRAGUE -- The countless hours agonizing over legislation, amendments and white papers are starting to get the better of some industry officials. Frustration was boiling up today at International Swaps and Derivatives Association AGM.

Banks in China that have entered naked short positions or derivatives which may result in unlimited losses must unwind or hedge the positions by the June 30.

The Financial Stability Board believes regulatory or other limits regarding the derivative exposure in synthetic exchange-traded funds would help to contain risks the board associates with the use of the products.

Structured product funds offered in Singapore will have until April 1, 2012 to come into compliance with a restrictive new code concerning exposure to and disclosure of over-the-counter derivatives.

A three- to five-year exemption for pension funds from clearing obligations is likely to be included in the next compromise text from the E.U. Council’s working group on European Market Infrastructure Regulation.

The Canadian Securities Administrators has proposed rules designed to reduce risks associated with electronic trading.

The European Union is said to be considering position limits on European commodities traders as French lawmakers press the EU to curb speculation that has been responsible for higher prices in oil and agriculture prices.

A group of 19 industry trade associations, including the U.S. Chamber of Commerce, have called on Congress to extend the July deadline for completion derivatives regulations under the Dodd-Frank Act.

Russia legislators have approved close-out netting for derivatives--a move that should fuel growth in a market that has widely been seen as hampered by the issue.

The Japan Securities Clearing Corporation has outlined its model for credit default swap clearing and set a target date of July 19 to begin clearing CDS on the iTraxx Japan index.

China structurers are working on derivative plays to give offshore investors synthetic exposure to A-shares outside of the Qualified Foreign Institutional Investor scheme.

The European Parliament’s economic committee has delayed a final vote on the European Market Infrastructure Regulation for a month.