Derivs - Regulation

The International Swaps and Derivatives Association has circulated a draft term sheet outlining auction settlement protocols to be followed in the wake of restructuring credit events.

Markit is planning to roll out carbon trading indices along with a number of products and services.

The auction to cash settle credit derivatives referencing General Motors has yielded a result of 12.5% for credit default swaps, and 97.5% for loan-only CDS.

Amherst Holdings’ move to arrange for bondholders to be repaid—preventing its clients from paying out hefty sums on credit default swap protection—is seen by some lawyers as within the rules of the game in the world of CDS.

PricewaterhouseCoopers confirmed in writing to Blue Sky Asset Management this morning that none of its investors will be affected by the insolvency of Keydata Investment Services.

The Swiss Structured Products Association is set to launch a ratings system for all structured products traded in the country, due to demand from its members for a standard risk benchmark.

JPMorgan rose from the thirteenth most common financial reference entity in credit default swap contracts to fifth place between May 22 and May 29, according to Depository Trust & Clearing Corp. data. A spokesman said the market did not process until very recently the succession event when JPMorgan assumed Bear Stearns’ debt.

The Depository Trust & Clearing Corp. Trade Information Warehouse is working to create a library of historical data on credit default swaps in line with regulatory demands for increased transparency in the over-the-counter market.

Exchanges aiming to centrally clear single-name credit default swaps have their work cut out to meet the July 31 deadline set by the European Commission.

Panelists at the International Derivatives Expo in London this morning questioned the way in which the U.K. Financial Services Authority has stepped up its supervision of firms, particularly in relation to their over-the-counter derivative positions.

As of late July, credit default swaps triggered by restructuring credit events in Europe and North America will be settled according to five buckets corresponding to the maturity of their underlying reference obligations.

Clearing house providers complained of the lack of definitions surrounding what constitutes standardized and customized over-the-counter derivatives at the second annual International Derivatives Expo in London this morning.