Derivs - Regulation

International Swaps and Derivatives Association members have come to a provisional consensus to alter the definitions regarding the right of termination with respect to a disruption event in the case of a change in law.

A lawsuit involving Lehman Brothers as the counterparty in a synthetic collateralized debt obligation may see another ruling in U.S. courts in the next few weeks.

Indian moves to create a domestic credit default swap linked to corporate bonds could flounder because of restrictions on seller hedging, according to respondents to a set of Reserve Bank of India draft proposals (DW, 8/11) that closed for comment earlier this month.

International Organization of Securities Commissions will issue a report on electronic and exchange trading and set out minimum requirements for data reporting by next July after setting up a task force on over-the-counter derivatives regulation.

The definition of a major swap participant should be based on more than the notional value of a particular swaps category that an entity holds, according to Kenneth Raisler, partner with Sullivan & Cromwell.

The Futures Industry Association is creating documentation for clearing over-the-counter derivatives that market watchers believe could become the industry standard.

The Commission of European Securities Regulators is raising the possibility of regulatory action if firms don’t hit the targets in standardizing over-the-counter derivatives.

The Futures Industry Association is creating documentation for clearing over-the-counter derivatives that some market watchers believe could become the industry standard.

The Chicago Board Options Exchange has detailed its rules for margins that will govern credit default options at a time when regulators move forward with shifting over-the-counter derivatives onto exchanges.

The USD350 trillion over-the-counter derivatives market will grow by around USD85 trillion by year-end 2013 due to an influx of buy-side volume stemming from the impacts of coming market reforms in both the U.S. and Europe. According to a Booz & Co. report, market reforms will increase price transparency and reduce risk, thus driving buyside volume and increasing notional value.

Sovereigns underperformed corporate credit for yet another week, a pattern that is becoming all too familiar.

The Hong Kong Securities and Futures Commission is seeking comment on a proposal that would introduce more flexibility for firms to determine whether clients are professional investors, making it less cumbersome to invest in over-the-counter derivatives and more complex structured products.