Derivs - Regulation

A group of chief executives of credit derivative product companies are seeking more formal representation in the industry.

Dislocations in the credit markets have forced collateral management to evolve, with a greater focus on dispute resolution, according to a panel of collateral managers and lawyers at ISDA's annual general meeting.

Robert Pickel, ceo of the International Derivatives and Swaps Association, opened today’s annual general meeting by warning new derivatives regulation must not be implemented in haste.

Equity-linked structured products—particularly those sold to the retail sector--will come under increased scrutiny by regulatory bodies, senior banking lawyers told an International Swaps and Derivatives Association forum today.

The derivatives industry must educate the rest of the market on the importance of privately-negotiated contracts in the light of heightened regulatory scrutiny, according to Jonathan Moulds, chair of the International Swaps and Derivatives Association during a speech today.

Regulation of over-the-counter trades looks set to tighten, bringing with it a new focus on operations.

Derivatives are now too interconnected in the global economy to fail--and more transparency in the market is needed, warned Credit Suisse’s investment bank chief executive Paul Calello today.

Collateralized debt obligations will return in simpler, more transparent forms, bankers said during opening discussions at the International Swaps and Derivatives Association’s annual general meeting today.

Speaking at the China Derivatives Summit this week, Shen Bingxi, deputy director general of People’s Bank of China, suggested that rating agencies should be regulated if structures such as collateralized debt obligations are ever to reach China.

Speaking at yesterday's Euromoney Seminars' China Derivatives Summit, the Chinese banking regulator discussed expected growth of yuan derivatives and the need to improve liquidity in these instruments.

Markit has said it is unlikely to publish CMBX volumes, in spite of the Commercial Mortgage Securities Association's concern trading on the index is injecting volatility into the market.

The Trust Association of Republic of China has drafted a Master Agreement for Structured Securities, which would put the burden of product disclosure and investor suitability on the providers rather than the distributors of structured investments, and sent it to Taiwan's regulator, The Financial Supervisory Committee.