Derivs - Regulation

The Hong Kong Exchange has unveiled the initial members and founding shareholders of its over-the-counter derivatives clearinghouse.

Derivative contracts with Cypriot counterparties may not pay out because of recent capital controls.

Three Russian banking associations are considering amending the country’s master agreement that governs termination risk and the subsequent close-out netting provisions.

The International Swaps and Derivatives Association has been approved as an affiliate member of the International Organization of Securities Commissions at the regulatory association’s recent board meeting in Sydney.

The International Swaps and Derivatives Association Credit Determinations Committee has decided a credit event occurred at Dex One and Supermedia.

Pension funds do not have the cash needed to provide margins to central counterparties, and therefore the temporary exemption from the clearing obligation under the European Market Infrastructure Regulation is warranted, according to Steven Maijoor, chair of the European Securities and Markets Authority.

Charles Chiang, former director and head of equity derivative flow trading at Citigroup in Hong Kong, has rejoined JPMorgan to work in a senior delta 1 trading position, also in Hong Kong.

The industry is concerned that product intervention rules will have a detrimental effect on innovation and may risk in firms limiting their offerings to vanilla products.

At least one bank is publicly proclaiming what many others have been talking about privately in the wake of tighter U.S. regulations. Frank Pucci, a senior compliance official at ANZ, told an Asian conclave this week that his firm is really benefiting from having full access to the U.S. markets, yet is able to attract business from non-U.S. counterparties in Asia who want to avoid compliance with Dodd-Frank.

Japan and Australia will become the two largest central clearing markets in the Asia Pacific region when client clearing rules are implemented there sometime in early 2014, according to speakers at the Futures and Options World Derivatives World Asia conference in Hong Kong today.

Futures dealers, traders and exchanges will benefit from increased volumes as the industry continues forward with the futurization of the swaps market, claimed speakers at the Futures and Options World Derivatives World conference in Hong Kong today.

Market participants have urged the European Securities and Markets Authority to amend its approach to the calculation of the net short position in sovereign debt as part of the regulation on short selling and certain aspects of credit default swaps.