Derivs - Regulation

The majority of Economic and Monetary Affairs Committee members at the European Parliament and officials at the Internal Market and Consumer Protection Committee, are supporting Michel Barnier as the European Commissioner for Internal Market & Services.

Players trading derivatives claims against the Lehman Brothers estate have come up with a variety of structures to tackle how the bankruptcy court will value the contracts.

The Chicago Board of Education has settled its dispute with Lehman Brothers over whether it has to make payments on an open interest-rate swap by netting amounts owed and switching the swap counterparty to Goldman Sachs.

Some U.K. financial institutions are considering paying cash bonuses into offshore trusts set up for employees to get around the newly imposed 50% tax on bonuses over GBP25,000 (USD39,465).

The International Swaps and Derivatives Association has set up a global advisory board to work alongside its Documentation Committee on new products and legal issues, with both buyside and sellside representation.

Foreign and local banks in China are carving out bespoke margin arrangements with local corporates where the banks do not have to post collateral—potentially leaving corporates without protection in the event of a counterparty default.

The Bank for International Settlements’ Committee on Payment and Settlement Systems and the technical committee of the International Organization of Securities Commissions (IOSCO) are about to issue a consultation that will focus on trade repository best practices for the first time.

Korea Exchange and the Korea Securities Depository have emerged as leading candidates to clear over-the-counter derivatives in South Korea.

The Japanese Financial Services Agency has moved away from the idea of giving a future central counterparty clearer the power to decide on bankruptcy credit events.

U.S. Senator Maria Cantwell (D-Wash.) said at a briefing on Capitol Hill today that she will work to ensure the future Senate derivatives bill does not feature any of the perceived loopholes in the House of Representatives bill passed on Dec. 11.

The Chicago Board of Education has settled its dispute with Lehman Brothers over whether it has to make payments on an open interest-rate swap, according to documents filed in court yesterday.

Eurex Clearing is working on ways to clear non-standardized over-the-counter equity derivatives once the European Securities and Markets Authority has been established.