Derivs - Regulation

The Financial Stability Oversight Council has asked market participants what criteria regulators should use to determine which clearinghouses are systemically important and therefore should be closely monitored by the Federal Reserve.

The Basel Committee on Banking Supervision has teamed up with the Committee on Payment and Settlement Systems to form a joint working group to revise the committee’s supervisory guidance for managing settlement risk in fx transactions.

The China Banking Regulatory Commission will likely take a stance on credit derivatives when it writes rules for local compliance with Basel III capital adequacy requirements.

European members of Parliament have moved to exempt fx and real estate businesses from forthcoming over-the-counter derivatives legislation in the E.U.

The U.K. House of Lords E.U. Subcommittee on Economic and Financial Affairs is against a ban on naked short selling and credit default swaps on sovereign bonds.

The Commodity Futures Trading Commission should not bar general counsel from serving as chief compliance officers of swap execution facilities, the Wholesale Markets Brokers’ Association Americas has urged.

The number of firms licensed to trade credit risk mitigation instruments in China has grown from 17 to 38 since the pilot program kicked off in November.

The Malaysian Securities Commission and the Oxford Centre for Islamic Studies have floated the idea of a public good standard for Shariah-compliant financial products, including derivatives and structured products.

The Korea Exchange will most likely house the coming Korean over-the-counter derivative central clearinghouse rather than the Korea Securities Depository, according to an official familiar with the decision.

The Australian Securities & Investments Commission has announced that it will begin scrutinizing the advice given by the issuers of capital-protected products and individually managed accounts.

Authorities should avoid regulating commodities derivatives through position limits, according to the International Swaps and Derivatives Association.

The Japan Securities Clearing Corp. is planning to limit clearing member liability for its coming over-the-counter derivatives clearinghouse, according to officials familiar with the process.