Derivs - Regulation

A new survey from the International Swaps and Derivatives Association suggests derivatives trading will grow in Asia, but that uncertainty over close-out netting could stand in the way of the market’s development.

Data modelling firm Simudyne, which uses an innovative approach to simulating market scenarios, has said its technology will help banks execute trades, as different asset classes grapple with algorithmic trading and risk predictions. The company has closed a new round of fundraising led by Barclays.

Regulators are risking fragmenting the global derivatives market by inconsistently applying G20 reforms, according to a new report from the World Federation of Exchanges and Oliver Wyman.

Sara George, who has been involved in some of the most eye-catching financial court cases over recent years, has joined Sidley Austin as a partner in its securities and derivatives enforcement and regulatory practice.

The European Commission and the Monetary Authority of Singapore have agreed to mutually recognise their respective trading venues for derivatives.

Carlo Palombo and Colin Bermingham were sentenced on Monday by a UK court for manipulating Euribor rates during the financial crisis.

The UK’s Financial Conduct Authority has hit Goldman Sachs with a £34.3m fine for misreporting transactions.

The US Commodity Futures Trading Commission has amended its margin comparability determination for Japan, further recognising the equivalence of US and Japanese rules on swaps.

Japan’s securities market supervisor has called for Citigroup to be fined for market manipulation of the country’s government bond futures. The trader in question has now left the bank as a result of the episode.

The US Commodity Futures Trading Commission (CFTC) has agreed to ease regulations surrounding the use of swaps in connection with loans offered by banks.

The European Council and Parliament signed a deal last week regarding the bloc’s financial supervisors. The European Banking Authority was set to receive new anti-money laundering (AML) responsibilities, but member states blocked some attempts to centralise supervisory powers.

The UK financial regulator has fined UBS a record £27.6m for misreporting transactions, in breach of the European Market in Financial Instruments Directive (MiFiD).