Derivs - Regulation

Hedge funds have been buying billions of U.S. dollars in notional in U.S. dollar/Hong Kong dollar options taking positions in case the Hong Kong Monetary Authority decides to de-peg the currency from the U.S. dollar.

Keith Noyes, regional director for the Asia Pacific at the International Swaps and Derivatives Association in Hong Kong sat down for a wide-ranging interview with Eleni Himaras, senior reporter and Hong Kong Bureau Chief for Derivatives Week.

The formation of vertical integration models could allow CCPs to take excessive risks as well as engage in predatory pricing, according to the Committee on Payment and Settlement Systems.

Singapore’s Economic Development Board is approaching U.S. corporate treasurers to pitch the city state as location for their treasury trading desks.

The Canadian Securities Administrators is consulting with the industry on over-the-counter derivatives regulation as the country prepares to meet its G-20 commitments in the area.

Regulators are increasingly requiring greater disclosure from banks before and after execution of trades to gain regulatory capital relief, such as those that involve derivatives, according to panelists at Citigroup's European Credit Conference in London Wednesday.

Lawyers say the exemptions for settlement of derivatives trades under a proposed Chapter 11-like law in Hong Kong are too narrow and could put swap counterparties in Hong Kong at a competitive and cost disadvantage.

Investors should outsource their collateral management operations in the post-reform OTC market, even if they feel it is a core competency, according to panelists at Financial Technology Forum’s OTC Derivatives Operations and Processing Conference today.

The OTC Derivatives Regulators' Forum will publish standards setting out trade repository functionality, according to Chris Tsuboi, supervising examiner at the bank.

European politicians were at odds Tuesday evening over the ramifications of banning naked credit default swap trading, calling on regulators and the industry to provide more information on the topic before the Parliament moves forward with legislation aimed at short selling and CDS.

The China Banking Regulatory Commission may be loosening its planned restrictive approach to credit derivative trading.

National Association of Financial Market Institutional Investors has not mandated central clearing or banned naked credit derivatives in new Chinese credit derivative guidelines.