Derivs - Regulation

China’s State Council has published revised foreign exchange regulation to allow foreign enterprises and individuals to make onshore derivatives investments in the fx and rates markets for the first time.

The Clearing Corp. is moving closer to establishing a centralized platform for clearing over-the-counter credit default swaps, after initial tests conducted since July 4 have proved positive.

Monolines will have to adhere to strict reporting requirements for credit default swaps and collateralized debt obligations of asset-backed securities under statutory changes being crafted by the New York State Insurance Department.

The Securities and Exchange Board of India’s foreign institutional investor regulation amendments have caused anxiety amongst the industry over the definition of a new clause linked to off-shore derivatives, which it fears is too narrow and may curtail lucrative business if taken literally.

Discussions between Trust Association of Republic of China—which represents trust banks in Taiwan—and structured product providers concerning the drafting of the Master Agreement for Structured Securities have reached an impasse, industry officials fear.

The International Swaps and Derivatives Association is considering forming a working group to tackle buysider worries about its so-called close-out amount approach for early contract termination with a defaulted counterparty.

Lawyers are poring over proposed Financial Services Authority rules expanding disclosure requirements for equity contracts for difference.

New rules on naked short selling could push more investors to use credit default swaps to put on their shorts.

Credit correlation traders expect a wave of so-called regulatory unwind trades to hit the European market once spreads calm down, as banks look to comply with new Basel II rules

A ruling earlier this month by the Internal Revenue Service that non-U.S. investors in property derivatives will not be subject to taxes, first reported by DW Online, is set to be a catalyst for further foreign investment in the U.S.

U.S. desks are generally holding off from pitching a credit structure that allows holders to avoid marking-to-market positions.

New York State Insurance Regulator Eric Dinallo’s moves to tighten the rulebook for monolines active in credit default swaps has drawn fire from some in the derivatives market.