Derivs - Regulation

Some dealers will be able to terminate swaps and options referencing the stock of beleaguered mortgage lenders Fannie Mae and Freddie Mac, after traders agreed on Tuesday that a credit event had taken place.

Market participants are increasingly looking to uniform settlement agreements to trigger settlement processes for single-name credit default swaps.

Thai commercial banks may need to beef up their in-house derivatives expertise if they are able to capitalize on recent Bank of Thailand regulations which have freed up the derivatives market.

The International Swaps and Derivatives Association is hosting a conference call this morning among 10-15 banks and brokers and it will likely lead to dealers getting the option to terminate derivatives linked to Fannie Mae and Freddie Mac.

The International Swaps and Derivatives Association’s decision to hold an auction to determine the settlement price of credit default swaps referencing rescued mortgage lenders Fannie Mae and Freddie Mac could spark big losses for protection buyers.

The new loan-only credit default swap awaiting approval from the International Swaps and Derivatives Association will not have a cancellation feature.

The Financial Accounting Standards Board is facing stiff opposition to its plans to change accounting for hedging activities.

Credit events at monoline financial guarantors have the market buzzing about how well the mechanisms for settling credit default swaps referencing monolines will hold up.

DocGenix, a new venture formed by law firm Allen & Overy, has launched a service that electronically tags key language in over-the-counter derivative contracts.

The dealer group working on a revised loan-only credit default swap contract that removes the cancelibility option has handed it over to the International Swaps and Derivatives Association for a road test.

The Bank of Thailand has freed up local commercial banks and foreign banks with an on-shore presence to use derivatives more often across the asset spectrum via new regulations which kicked in earlier this month.

A working group of the International Swap and Derivatives Association is slated for a Sept. 4 call to discuss an advanced draft of standardized documentation for a type of contingent credit-default swap known as derivative termination obligation.