Derivs - Regulation

The overall credit default swap notionals and trade counts that were reported to swap data repositories last week both increased by 15% compared to the same time last year, according to data from the International Swaps and Derivatives Association.

The Bank of England has signed a co-operation agreement with the European Central Bank to share clearing house information and boost currency swaps lines, after the ECB lost a court case to try to force euro trades to be cleared in the eurozone.

Firms with trade reporting obligations can save resources allocated to complying with reporting requirements by outsourcing their requirements to a third party provider. This can reduce initial system building costs, as well as provide better adaptive abilities in the future, according to Sapient Global Markets.

Swaps market participants face new challenges with delegated reporting liabilities as trade reporting requirements have evolved globally, according to research from Sapient Global Markets.

Asset managers and the funds that they manage do not present systemic risk according to a letter to the Financial Stability Oversight Council from two trade associations, and as a result, should be independently reviewed by the Securities and Exchange Commission.

The overall interest rate notionals and trades counts that were reported to swap data repositories last week increased by 22% and 35%, respectively, from the same time last year, according to data from the International Swaps and Derivatives Association.

As part of MiFID II, the European Securities and Markets Authority is soliciting comment on debt instruments with embedded derivatives. The outcome could restrict retail customers’ access to such products.

As regulators begin imposing penalties for compliance transgressions in swaps markets, firms must build out their operational and reconciliation frameworks, as well as tracking the source of errors and adjusting to new problems dynamically, according to market officials.

US buysiders are struggling to access overseas liquidity as many dealers do not want to trade with US clients due to regulations, such as Dodd-Frank, resulting in increased fragmentation and smaller liquidity pools.

Market participants trading non-centrally cleared swaps have been given a reprieve as proposals from regulators regarding rules for initial and variation requirements have been delayed.

US buysiders are struggling to access overseas liquidity as many dealers do not want to trade with US clients due to regulations such as Dodd-Frank, resulting in increased fragmentation and smaller liquidity pools.

The Commodity Futures Trading Commission has fined ICE Futures $3m in penalty liabilities for failure to accurately submit trade reporting data as mandated under the Dodd-Frank Act for designated contract markets.