Derivs - Regulation

Global market participants are already migrating their trading of over-the-counter derivatives onto central clearinghouses or switching their allocation to exchange-traded alternatives ahead of mandatory clearing laws, according to the World Federation of Exchanges.

The European Securities and Markets Authority has declined to adopt straight-through-processing for its final regulatory technical standards for over-the-counter derivatives, central counterparties and trade repositories.

RBC Investor Services has launched a global middle and back-office platform for listed and over-the-counter derivatives.

The International Swaps and Derivatives Association has called on Canadian regulators to make clear which trades, entities, transactions and markets are covered in the latest over-the-counter central counterparty clearing consultation from the Canadian Securities Administrators.

Vietnam is looking to establish an exchange-traded fund market, according to a draft consultation from the country’s regulator. The consultation comes as part of a wider push into the open-ended fund market, according to lawyers.

Replacing the London interbank offered rate could be highly disruptive to the financial market and would be a difficult task to undertake, according to Stephen O’Connor, chairman of the International Swaps and Derivatives Association and managing director at Morgan Stanley.

The European Securities and Markets Authority has released a consultation paper on proposed guidelines on remuneration policies and practices under the Markets in Financial Instruments Directive.

The Australian government has narrowed its definition of a derivative transaction contained within its new over-the-counter derivative regulatory framework, according to lawyers.

The Danish Presidency of the E.U. has introduced an explicit waiver for non-equity derivatives in the Markets in Financial Instruments Regulation.

New broad regulations in Australia dealing with the establishment of onshore clearing and settlement providers could dictate how an over-the-counter derivatives clearinghouse operates in the country, according to lawyers.

A push to internationalize the master agreement developed by China’s National Association of Financial Market Institutional Investors (DI, 11/23/11) is facing opposition within the regulatory system as well as from the industry, according to lawyers who track the issue.

The London interbank offered rate is economically relevant and necessary for the functioning of the over-the-counter derivatives market, and any discontinuation of the benchmark process could result in systemic risk and market dislocation, according to the International Swaps and Derivatives Association.