Derivs - Regulation

The Japan Securities Clearing Corp. is aiming to begin its client clearing service for yen-denominated interest rate swaps in Q1 2014, according to market participants in the country.

Hong Kong’s Legislative Council is expected to vote on framework legislation, intended to be the legal backbone of the country’s central clearing counterparty and trade repository reforms, sometime before the body’s summer recess in July, according to lawyers.

Credit Suisse is reviewing internal policies and procedures to mitigate the risk of breaching position limits after the Hong Kong Securities and Futures Commission fined the firm on Tuesday HKD1.6 million (USD206,100).

The International Swaps and Derivatives Association and the Futures and Options Association have published an addendum to existing master documentation. The addendum is a template for counterparties to document the relationship between a clearing member and client when clearing over-the-counter derivatives across central counterparties.

Further changes are required to ensure that failing central counterparties can be resolved safely and effectively without calling on public funds, according to a Bank of England report.

Tradeweb has revealed it completed its first electronic buyside pre-trade credit check for swaps ahead of the introduction of mandatory clearing for swap and derivatives for category two entities under Dodd Frank today.

The International Swaps and Derivatives Association has published a new 2013 standard credit support annex to standardize market practices in collateral management for over-the-counter derivatives.

The European Securities and Markets Authority and the European Banking Authority published their final report setting out principles governing transparency and robustness of benchmarks today.

Industry officials aren’t buying an European Securities and Markets Authority review of the short selling sovereign credit default swaps ban. They are questioning the effectiveness of the ban and impact on liquidity.

The European Securities and Markets Authority has declared that a central counterparty should not exclude client positions from the calculation of the size of the default fund.

A new shari’a master agreement to manage firm liquidity will spur the introduction of instruments and structures for shari'a compliant liquidity management.

The increase in hedging costs post-Dodd Frank will lead to a drag on fixed income portfolio returns, with costs ranging from 20-62 basis points for centrally cleared instruments, according to a report from Sapient Global Markets.