Derivs - Regulation

The China National Association of Financial Market Institutional Investors will develop a pricing benchmark and standardized documentation for onshore credit derivatives.

Scott O’Malia, a member of the U.S. Commodity Futures Trading Commission, warned that derivatives regulations being developed will fail if they are so rigid that they “create a market structure that fractures liquidity and creates an incentive to utilize dark pools, simply because our rules do not provide the flexibility necessary to facilitate on- exchange transactions.”

The American Benefits Council and the Committee on Investment of Employee Benefit Assets have expressed concern that a private derivatives regulatory group headed by the Federal Reserve may weaken regulations under the Dodd-Frank Act.

There are hints that the European Union member states may be pressing the E.U. to extend proposed regulations of the over-the-counter derivatives market to the entire derivatives sector.

The U.S. Commodity Futures Trading Commission plans on setting position limits based on data it expects to collect under a proposed swap trader’s reporting ruling, according to Dan Berkovitz, general counsel at the CFTC.

Jamie Dimon, ceo of JPMorgan Chase, has criticized proposed regulations to govern credit default swaps, saying they “would damage America.”

The European Council failed to agree on the Hungarian presidency’s latest compromise on the short-selling and naked credit default swap regulation in a meeting yesterday.

The Brazilian over-the-counter derivatives market should change in order to allow for more creativity and innovation, especially in collateral management systems, according to Otavio Yazbek, commissioner at the Brazilian regulator Comissao de Valores Mobiliarios.

China’s onshore foreign exchange options market will likely grow at a similarly slow pace to the recently-launched credit derivative market in the country, industry officials say.

Complaints from retail investors in the U.K. over structured products declined in the second half of 2010 from the previous half, according to the U.K. Financial Services Authority’s latest aggregate complaint statistics released today.

As E.U. leaders close in on a remedy for future sovereign crises, it’s not looking very good for buyers of protection on sovereign credits.

U.S. regulators need to reconsider proposed levels for block trade thresholds, Robert Pickel, executive vice chairman of the International Swaps and Derivatives Association, told Derivatives Week in an exclusive interview.