Derivs - Regulation

Royal Bank of Scotland is pushing calendar spread trades to position for what the bank is forecasting will be a gradual appreciation of the yuan against the U.S. dollar in six to 12 months time.

The Coalition for Derivatives End-Users is planning a fly-in to Washington, D.C. on April 20, to lobby for clarity on end-user exemptions proposed in federal over-the-counter derivatives clearing requirements.

New legislation designed to stop hedge funds from using total return swaps to avoid paying withholding taxes on dividends has a big hole in it: it bans the TRS but doesn’t say anything about other derivative structures that have the same effect.

A proposal from the U.S. House of Representatives awaiting discussion in committee could reverse an old law that prevents mutual funds from investing directly in commodities.

Some U.S. derivatives professionals are looking towards structured products tied to longevity, instead of traditional swaps, as a means to spur the U.S. market and bringing it on a par with the relative boom seen recently in the U.K.

Dealers are estimating a 34% recovery rate at auction for triggered credit default swaps referencing Ambac Assurance Corp.

The European Commission will decide in October whether to ban naked sovereign credit default swaps.

Japan’s Financial Services Agency has given tacit approval to what is believed to be the first property derivatives trade by an onshore bank, and outlined other non-proprietary trades banks can perform.

National and European regulators would be given powers to unwind derivatives portfolios and slash payments due to creditors of major financial institutions deemed at risk of failure under plans being formulated by Members of the European Parliament.

The Securities and Exchange Commission should not bar the use of derivatives in funds, according to former Commissioner Paul Atkins.

The U.K. House of Lords today issued a report in response to regulatory developments at the E.U. Commission targeting over-the-counter derivatives. As first reported by Derivatives Week, the E.U. Sub-Committee A supports the European Commission’s stance on appointing the proposed European Securities and Markets Authority to regulate clearing houses.

The U.K. Conservative Party will appoint permanent Treasury ministers to Brussels and every E.U. state to lobby the European Commission on over-the-counter derivatives legislation, if the party wins the British general election in May.