Derivs - Regulation

The Financial Stability Board (FSB) praised international efforts to reduce systemic risk and improve transparency of over-the-counter (OTC) derivatives markets on Thursday, while slamming the “opaque web” of exposures that existed before the reforms.

Hong Kong regulators on Tuesday decided that delta one warrants will not be classified as over-the-counter derivatives products, mirroring the actions of European Union authorities.

Mark Carney’s Mansion House speech last week was a reminder of the progress global regulators have made in the wake of the 2008 crisis, and the dangers of throwing that away.

The European Central Bank on Friday submitted a recommendation to allow it to regulate “clearing and payment systems”, both within the European Union and in other countries.

The French markets regulator, the Autorité des Marchés Financiers (AMF), has laid out its vision for enhanced powers at the European Securities and Markets Authority (ESMA) to make sure that Europe’s supervisors apply consistent standards.

From September IHS Markit will include UK and Swiss banks at the holding company level in its credit default swap (CDS) indices, but the index provider is still consulting on whether or not to include non-preferred senior debt.

Sharon Bowen, commissioner at the Commodity Futures Trading Commission (CFTC), on Tuesday announced she would be stepping down from her role, while communicating her frustration at the Trump administration’s failure to confirm new candidates.

The European Securities and Markets Authority (ESMA) on Monday said that it would not extend the trading obligation deadline for certain counterparties under the Markets in Financial Instruments Regulation (MiFIR).

The European Commission made a play to snatch euro clearing business for the eurozone this week, proposing new powers to force the relocation of what it terms systemically important third-country clearing houses that clear euro denominated derivatives. Costas Mourselas reports.

The International Swaps and Derivatives Association (ISDA) has advised European Commission officials against legislating to relocate the clearing of euro denominated products to the Eurozone.

Clearing experts vigorously debated the topic of central counterparty (CCP) recovery and resolution this week at the Futures Industry Association's International Derivatives Expo (IDX).

The debate on clearing euro derivatives showed signs of heating up on Wednesday, when a French regulator speaking at the International Derivatives Expo (IDX) in London insisted that the activity should take place in the eurozone.