Derivs - Regulation

The chairman of the China Banking Regulatory Commission made a clear statement to sell-side institutions that if they wish to further tap Chinese buys-siders with derivatives they need to clean up their act.

Bob Pickel, ceo of the International Swaps and Derivatives Association, has played down concerns that the new decision-making committee on credit default swap triggers may meet logistical problems in Asia due to its diverse legal jurisdictions.

Allstate Corp. has stated that all the credit default swaps it has sold were written by regulated subsidiaries that have the approval to do so.

Bart Chilton, a commissioner with the Commodity Futures Trading Commission, has said the agency is gearing up to expand its regulation of carbon trading, which he described as potentially the largest commodity market.

Bank Indonesia is close to completing draft regulations governing the sale of structured products in Indonesia.

Wu Xiaoling, vice chairwoman of the finance and economic affairs committee of China’s National People’s Congress, said on a panel at the International Swaps and Derivatives Association annual general meeting today that a key project for China is creating a coherent system for filing and disclosing completed over-the-counter trades.

More dialogue with global regulators is essential to ensure the over-the-counter derivatives market will still perform an important role in the financial sector, Robert Morrice, chairman and ceo in the Asia Pacific for Barclays Bank, said in his keynote address at ISDA's annual general meeting in Beijing.

Yi Gang, deputy governor of the People’s Bank of China, sidestepped questions on whether he supports the use of credit default swaps at the International Swaps and Derivatives Association annual general meeting in Beijing today, shortly after he expressed a strong desire to see Chinese corporate bond issuance increase.

Andrew Donohue, director of the Securities and Exchange Commission’s Division of Investment Management, has floated the idea that the industry may need new rules to govern how mutual funds use derivatives.

An unidentified interdealer broker started calculating upfront fees for credit derivative index trades today based on new conventions that have not been formally agreed to and was forced by pricing model administrator Markit to back down.

The first hearing concerning the repayment rights of a defaulted swap counterparty in a collateralized debt obligation was heard last Tuesday, after being adjourned from March 11 by the U.S. Bankruptcy Court for the Southern District of New York.

The British Bankers’ Association and the London Investment Banking Association have criticized the Financial Services Authority's plans to bring proprietary traders under its approved persons regime.