Derivs - Regulation

The European Commission is not planning to limit the stakes dealers can hold in clearing houses.

One of the Lehman Brothers estate’s myriad derivatives counterparties got a reprieve in court last week.

Nomura International took a GBP10.8 million (USD16 million) trading loss in equity derivatives desk in the incident that sparked a U.K. Financial Services Authority sanction this morning.

New York assemblyman Joseph Morelle (D-Rochester), Virginia delegate Bob Marshall (R-13th) and North Dakota’s George Keiser (R-47th), are planning to introduce legislation that would effectively ban naked credit default swaps in their respective states.

A reconciled version of the two over-the-counter derivatives bills proposed by U.S. Congressmen Collin Peterson (D-Minn.) and Barney Frank (D-Mass.) will be released next week as part of a broad financial reform package, a spokesman for Frank said today.

Regulations imposed on Thursday by South Korea’s Financial Supervisory Commission to limit fx hedging transactions should have limited negative impact on market activity, analysts at Standard Chartered believe.

Preserving the confidentiality of post-execution trade data could throw a wrench in international regulators’ plans to create global trade repositories for over-the-counter derivatives—unless a clear regulatory framework is set up to protect users.

The Nigerian Securities and Exchange Commission is looking to craft derivatives legislation following a surge in local trading volume over the past year. The regulator has been talking to the International Swaps and Derivatives Association to help with the project.

The battle of the CDO flip cause got heated in U.S. bankruptcy court today as lawyers for the Lehman Brothers Holdings estate argued that the firm should be paid ahead of noteholders—despite a recent English court ruling that said otherwise.

Industry veteran Connie Voldstad has been appointed ceo of the International Swaps and Derivatives Association. He’ll replace Bob Pickel, who will assume a newly created role of executive vice chairman. The change is effective Nov. 30.

Two powerful U.S. senators are planning to introduce over-the-counter derivatives bills, potentially slowing the pace of the financial regulations that are working their way through Congress.

Last-minute attempts are being made to convince South Korea’s National Assembly to ditch plans to introduce a mandatory pre-approval process for new structured instruments.