Derivs - Regulation

The European Commission is considering giving national regulators the power to slash payments due to creditors of major financial institutions deemed at risk of failure, two weeks after politicians pledged their support for the idea (DW, 3/31).

Gerald Corrigan, chairman of Goldman Sachs, told European politicians at a public hearing this afternoon that the firm would enter into currency swaps with Greece again, despite recent political furor over the transactions.

U.S. Senator Blanche Lincoln, chairman of the Senate Agriculture Committee, today laid out the main detail of derivatives regulation in the Committee’s planned financial reform bill.

Deutscher Derivate Verband, the German structured products association, has launched a marketing template to be used in E.U. member states in response to the region’s plans to regulate how products are sold to retail investors.

Only 13% of derivatives users have the technology and 10% have the operational workflow in place to begin clearing over-the-counter trades.

U.S. Senator Judd Gregg (R-NH), a member of the Senate Banking Committee, is about to speak on the floor of the Senate regarding financial regulatory reform. You can watch it here on C-SPAN.

U.S. Senator Judd Gregg (R-N.H.) said earlier today that the final sticking points in an agreement on over-the-counter derivatives reform between himself and Senator Jack Reed (D-R.I.) center on end-user exemptions from clearing and the amount of OTC trades that should go on exchange

The European Commission has sent a discussion paper to corporates and treasury associations detailing a series of options it is reviewing on the subject of end-user clearing exemptions.

European politicians are beginning to push back on U.S. efforts to drive global cooperation on over-the-counter derivatives regulation.

Five-year credit default swaps on Greece pulled in dramatically this morning following the announcement of a lifeline worth EUR45 billion (USD61 billion) yesterday.

March ABX.HE remittance reports showed conditional default rates rising for the first time in months, while delinquencies continue to fall.

The Coalition for Derivatives End-Users is planning to blanket the U.S. capitol April 20 to push for an exemption from mandatory clearing for end-users. As first reported by Derivatives Week on Tuesday, the move and its timing is driven by speculation that Chris Dodd’s (D-Conn.) reform bill may head to the Senate floor without the exemption.