Derivs - Regulation

The absence of an exemption for pension funds in Switzerland’s derivatives regulatory proposals within its draft Financial Market Infrastructure Act will drive up costs and staffing pressures for such users, according to lawyers.

The US Commodity Futures Trading Commission has extended its temporary no-action relief for swaps trading on multilateral trading facilities in European Union member states, following calls from MTFs for more time.

The move by the US Commodity Futures Trading Commission in February for no-action relief for multilateral trading facilities in the EU from the swap execution facility registration requirement doesn't include an exemption for trading platforms which exist outside of the EU, raising fears for some market participants.

ISDA and Markit have added to the portfolio of tools available on ISDA Amend to help market participants prepare for a change in segregation rules that come into force on May 5.

The Securities Industry and Financial Markets Association has submitted comments to numerous regulatory agencies surrounding margin requirements for non-centrally cleared swaps and security-based swaps, with one being adopting a weekly initial margin schedule to minimise disruptive margin disputes.

The US Department of the Treasury is to give relief from the application of proposed regulations under Internal Revenue Code section 871(m) to equity-linked derivative transactions. Instead of applying to equity-linked derivatives acquired before March 5, the new rules will only apply to equity-linked derivatives issued more than 90 days after the new regulations are finalised.

James Kelly, a former managing director at Goldman Sachs in derivatives sales management for U.K. clients, institutions and hedge funds, has joined the U.K. Financial Conduct Authority as an advisor in the wholesale banking and investment management division within supervision.

Sixty-five percent of market participants expect the European Commission to provide companies a relief mechanism for compliance with European Markets Infrastructure Regulation, a week before reporting to trade repositories kicks off Feb. 12.

The introduction of swap execution facilities combined with reduced activity by investment banks impacted the performance of global broking in the fourth quarter of last year, according to ICAP.

Insider trading and market manipulation are punishable as criminal offences under the Market Abuse Directive, following an agreement between the European Council, European Parliament and European Commission.

The International Swaps and Derivatives Association’s new credit definitions will go live in September 2014.

Market participants have hit back at requirements for record keeping and market soundings in their responses to a European Securities and Markets Authority consultation on possible implementing measures for the Market Abuse Regulation.