Derivs - Regulation

Japanese investment firms have either already registered as major swap participants, or are in the midst of preparing to register with the U.S. Commodity Futures Trading Commission as they near the USD8 billion swap position threshold set by the regulator.

Staffers working in derivatives units at European banks in the U.S. and Asia Pacific would be hit hard should restrictions surrounding bonus payouts from the European Union go into force.

A number of South Korean asset management firms are looking to issue synthetic exchange-traded funds in the country later this year.

The Hogg Tendering Advisory Committee for the London interbank offered rate has launched the tendering process to find a new Libor administrator.

Thai domestic structured product regulation is leading to greater volumes as issuers and investors now have greater legal clarity.

Regulating market indices in the same way as interest rate benchmarks would result in additional costs for providers, which would ultimately be passed onto end-users and potentially raise barriers to entry into the indexing business, according to buyside firms.

The Australian Securities Exchange is planning to offer futures referencing its volatility index, known as the S&P/ ASX 200 VIX, in the second half of 2013, with options referencing the futures to follow.

The turnover of structured products traded on European stock exchanges in Q4 of 2012 declined by 13.4% versus Q3 2012 and 21.9% year-on-year, according to the latest quarterly report from the European Structured Investment Products Association.

The International Swaps and Derivatives Association has called on the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions to create and publish a list of Qualifying Central Counterparties or compliant regimes.

Regulators in Europe are making a greater effort in involving structured product industry associations in regulation and legislation, according to speakers at the 10th annual StructuredRetailProducts.com conference in London today.

Some market participants are refraining from doing business with counterparties in particular jurisdictions and some banks are shifting operations back to their domestic markets due to a lack of regulatory certainty and global harmonization.

The European Securities and Markets Authority should clarify that the Alternative Investment Fund Managers Directive is not intended to apply to structured issues, according to the Joint Associations Committee on Retail Structured Products.