Derivs - Regulation

European regulators must take into account how adopted asset segregation models will fit alongside the bankruptcy code, according to Ted Leveroni, executive director, derivatives strategy and external relations at Omgeo.

China’s Supreme People’s Court is unlikely to interpret the nation’s bankruptcy law, clarifying provisions similar to close-out netting arrangements, ahead of an actual bankruptcy case, despite active lobbying for judicial guidance from the nation’s regulators.

Regulators in Europe are urging buysiders to make sure they are prepared for derivatives regulations, as buyside participation in industry regulatory protocols remains sluggish.

Open access requirements set out in proposals for the second Markets In Financial Instruments Directive in 2011 are no longer supported by market participants, according to Andreas Preuss, ceo of Eurex.

Global aggregation of trade repository data is essential to enable comprehensive monitoring of risks to financial stability, according to the Financial Stability Board.

Important questions must be addressed before the U.S. can finalize substituted compliance, according to Commissioner Mark Wetjen of the Commodity Futures Trading Commission.

The International Swaps and Derivatives Association and Global Financial Markets Association have opposed changes to pillar one of the Basel II accord proposed by the Basel Committee for Banking Supervision.

The issuance of exchange-traded funds referencing more diverse Chinese underlyings could increase should Hong Kong subsidiaries of U.S. or European fund managers receive approval under the renminbi qualified financial institutional investor program by end-of-the-year.

U.S.-based counterparties operating in Asia could get the cold shoulder from major local swap dealers, such as Singaporean banking institutions, and mid-tier Japanese securities firms, after the Commodity Futures Trading Commission’s exemptive relief on swap rules ends July 12.

Last week investors were feeling nervous about emerging market credit. Fund outflows were increasing and spreads in emerging market sovereigns widening sharply.

A clause in the Markets in Financial Instruments Regulation, which allows benchmark providers to refuse index licenses, has been criticized by over-the-counter derivatives participants who argue the move stifles competition.

The European Parliament’s Economic and Monetary Affairs Committee has proposed that participating countries in the Financial Transaction Tax should be permitted to apply a higher rate of tax to what it determines risker over-the-counter derivatives trades, compared to exchange-traded derivatives, cash equities and bonds.