Derivs - Regulation

Central clearing and the potential of being overregulated in Europe and the U.S. are the main challenges for the credit derivatives market, according to the dealers polled in FitchRatings’ latest credit derivatives survey.

Risk needs to factor in to how regulators define block trades, industry players are saying. Block trades will get to delay reporting and/or fewer disclosure requirements, under new standards.

Legislative proposals for the over-the-counter derivatives market released today by the European Commission lack specific detail and will create uncertainty in the market, according to industry officials.

Disclosing too much derivative trade information could expose counterparties, hurting their ability to trade and as a result reducing liquidity.

U.S. regulators have been urged to exclude end users from the definition of major swap participant.

International regulators emphasized efforts made toward making sure financial regulations jibe across the world.

Clearinghouses may fall under the purview of the new U.S. systemic risk council, which will be charged with deciding which institutions are systemically important.

The National Futures Association and the Commodity Futures Trading Commission are in talks about giving the Chicago-based self-regulatory organization oversight of swap execution facilities, or SEFs.

Two former Goldman Sachs staffers are working to launch the first equity derivative swap execution facility, called eDeriv.

The state of Alaska is asking that states and government bodies within them be allowed to invest in private placements, including structured notes.

Regulators need to resist the temptation to alter a clearinghouse system that has worked well until now, said panelists discussing the challenges for the clearing world at the Swiss Futures and Options Association’s 31st Bürgenstock meeting in Interlaken, Switzerland.

Deutscher Derivate Verband, the structured products association of Germany, will release additional disclosure templates for structured products in the next couple of months.