Derivs - Regulation

Migrating clients onto newly-approved swap execution facilities could take months, despite the U.S. Commodity Futures Trading Commission Wednesday deadline for swaps trading to be moved onto the platforms.

The European Commission will not agree to delay the start of reporting exchange-traded derivatives to trade repositories, according to Stewart Macbeth, president and ceo of the DTCC Derivatives Repository.

The European Commission has extended the timeline for the European Securities and Markets Authority to submit draft regulatory technical standards on the cross-border application of the European Market Infrastructure Regulation.

Traiana and MarketAxess have completed the first live credit default swap index trade using Traiana’s CreditLink service to verify pre-trade credit limits, with JPMorgan as the clearing member for a buysider.

Scott O'Malia, a commissioner at the Commodity Futures Trading Commission, wants an extension to the Oct. 2 deadline for trading on a swap execution facility, he told DW on the sidelines of the 34th Bürgenstock Global Derivatives Forum in Geneva today.

Interoperability of clearing models on a global scale is neither desirable nor possible in the short-term, according to clearinghouse officials speaking at the 34th annual FIA/SFOA Bürgenstock Forum for Derivatives Markets in Geneva this morning.

Deliverable swap futures could boost liquidity in derivatives markets and lead to a healthier industry going forwards, Jeffrey Howard, managing director and global co-head of prime services markets at RBS Securities, told the Bürgenstock global forum for derivatives markets in Geneva today.

The Hong Kong Exchange has made futures available on its HSI Volatility Index and China Exchanges Services China 120 Index to U.S.-based investors.

Lawyers warned that the regulatory balkanization of financial markets is inevitable and may be irreversible, at the 2013 Annual ISDA Europe Conference in London yesterday.

Regulators must create a harmonized, robust derivatives system across domestic borders to avoid a race to the bottom on issues such as margin requirements, according to Martin Wheatley, chief executive of the Financial Conduct Authority in London.

The Financial Conduct Authority has fined JPMorgan GBP137,610,000 (USD220 million) for serious failings relating to its chief investment office’s USD6.2 billion London Whale trading losses, that were sustained last year.

Wells Fargo has requested that the European Securities and Markets Authority enables third country branches to choose which regulation transactions should be subject to when entering derivative contracts between local branches of third country entities.