Derivs - Regulation

A German MEP reignited the explosive topic of London-based euro clearing on Tuesday, proclaiming that “EU citizens decide on their own money.” A move to force euro clearing to take place inside the eurozone could raise the cost of derivatives collateral and damage risk management, lawyers warned, as well as denting the City's position as a financial centre. Costas Mourselas and Jean Comte reports.

The European Commission delivered the final blow to a proposed merger between Europe's biggest stock exchange operators, Deutsche Börse and the London Stock Exchange, on Wednesday, but some market observers wondered whether the parties themselves had gone cold on the deal.

The European Commission on Wednesday struck down the all-but-dead proposed merger of the London Stock Exchange Group (LSEG) and Deutsche Börse.

The Basel Committee on Banking Supervision (BCBS) slammed global banks today after it determined that only one had achieved full compliance with a set of principles aimed at improving risk data reporting.

The European Commission has signed off on a piece of legislation that, if unopposed by the European Parliament and Council, could extend clearing compliance deadlines for smaller over the counter derivatives traders.

The State Administration of Foreign Exchange (Safe) has followed up on a promise made at the end of last year, announcing on Monday that foreign institutional investors are now allowed to enter the onshore FX derivatives market.

Hopes for the London Stock Exchange Group's merger with Deutsche Börse were struck down on Monday, as European authorities’ latest demands on the parties proved too much for them to meet.

Droit Financial Technologies, a New York-based regulatory financial technology firm focused on over-the-counter derivatives, has made a senior hire in London as part of a European business drive.

With less than a month to go until a major global deadline for market participants to begin posting variation margin, concern has turned to clamour as buy-side officials, industry bodies and service providers have lined up to ask regulators to allow a reprieve.

Weaker than expected uptake of an ISDA protocol has left banks well behind schedule to meet the March 1 variation margin deadline and facing a “massive capacity crunch in February”, according to a report released on Wednesday.

The Financial Stability Board (FSB) has set out guidelines it wants authorities to follow in their frameworks used to resolve failing central counterparties (CCPs).

A letter from a top Republican Congressman in the US has asked that Federal Reserve Chair Janet Yellen halt participation in all international agreements aimed at setting global financial regulatory standards.