Derivs - Regulation

Members of the International Swaps and Derivatives Association kick started talks last week on how to deal with the Hong Kong Securities and Futures Commission’s plans to regulate over-the-counter retail investments.

Rep. Collin Peterson (D-Minn.) is planning to present an alternative to the draft over-the-counter derivatives bill put out last Friday by Rep. Barney Frank (D-Mass.), a possibility first reported by Derivatives Week.

Optcapital, a compensation administrator specializing in hedge fund clients, has apparently found a way for hedge fund managers to defer their performance fees so as to avoid high taxes—using an option.

The U.K. Takeover Panel has drafted a response to trade association feedback on pending option disclosure improvements.

The draft over-the-counter derivatives bill introduced by Rep. Barney Frank may contain unintended loopholes.

The Financial Services Authority has censured two former portfolio managers of Dresdner Kleinwort’s K2 structured investment vehicle for insider trading.

Senior members of the European Parliament Economic and Monetary Affairs Committee are supporting calls for corporations to be exempted from over-the-counter derivatives regulation.

A new lobbying group, The Coalition for Derivatives End-Users, sent a letter to all members of Congress arguing against mandated central clearing or increased collateral requirements for over-the-counter derivatives.

The Securities and Futures Commission is very likely to push through plans for intermediaries to disclose their commission on structured product they sell to retail investors.

A U.K. government move to stagger City bonuses and claw back remuneration attached to trades that sour after year one may encourage top staffers to move to foreign firms who’ve not signed up to comply yet.

The International Swaps and Derivatives Association is reopening its Small Bang protocol to allow new firms that have been set up since the last round in July a chance to incorporate the new auction settlement terms for restructuring credit events.

Hong Kong’s Securities and Futures Commission plans to give investors first rights to collateral proceeds over swap counterparties in the event a retail structured product is terminated.