Derivs - Regulation

Barclays credit strategists have called for a more comprehensive bail-in package in restructuring credit events than the one proposed in the International Swaps and Derivatives Association’s latest draft definitions.

The Ontario Securities Commission's final rules covering product determination, and trade repositories and derivatives data reporting are increasingly concerning market participants since no entity has been designated a trade repository in Canada yet.

Nick Tranter, head of FIG equities coverage at HSBC in London, has become head of equity sales for Europe, the Middle East and Africa in the firm’s global banking and markets division, also in London.

Hong Kong’s over-the-counter derivatives clearinghouse has cleared a U.S. dollar, renminbi non-deliverable forward and a Hong Kong dollar interest rate swap after beginning clearing operations on Monday.

The last year has seen regulations mandating reporting of derivatives trades being gradually implemented in a number of key jurisdictions around the world. As a result, it has been and continues to be a busy time for regulators, service providers and market participants alike.

The Malaysian Securities Commission, the Perbadanan Insurans Deposit Malaysia and Bank Negara Malaysia--the country’s central bank--are developing a regulatory framework that will see over-the-counter derivatives data reported to a trade repository.

The U.S. Commodity Futures Trading Commission has substantially expanded the scope of its cross-border reach with a document specifying that employees from non-U.S. firms based in the U.S. must comply with Dodd Frank, even if they are processing non-U.S. swaps, according to lawyers. Until now, the issue was specified in footnote 513 of cross-border guidance released by the CFTC in July, which referred to foreign branches but not affiliates, or agents, in the U.S.

Liquidity on swap execution facilities is being hit by players withdrawing from the platforms because of concerns about cross-border regulations.

The Financial Stability Board is working on setting up the Global Legal Entity Identifier Foundation, a non-profit organisation that will oversee a central operating unit and local operating units that will monitor the international LEI system.

Firms need more time to fully comply with the foreign accounting tax compliance act and effectively implement changes, according to numerous trade associations.

Firms that are engaged in derivatives trading are being asked to specify their derivative exposure in a range of asset classes entered into from Nov. 1, 2012 to Oct. 31, 2013, and submit the numbers via a survey to the Hong Kong Securities and Futures Commission by Dec 20, 2013.

Ben Radclyffe, head of equities electronic trading, Australia, at Deutsche Bank in Sydney, is relocating to the firm’s Hong Kong office.