Derivs - Regulation

Rules that stipulate how non-E.U. firms access and operate in the E.U., known as third country access provisions, could have a detrimental effect on the U.K. financial market as well as the E.U. financial sector if the current proposals are implemented, according to a report from the House of Lords European Union Committee on the updated Markets in Financial Instruments Directive.

New rules in Thailand, aimed at regulating the sale and marketing of structured notes for the first time, will make it harder to sell deals and grow the market, according to lawyers.

Paul Tucker, the deputy governor of the Bank of England, has called for a review of all indices based on submissions and not real transactions. The probe should be part of the remit for Martin Wheatley, managing director of the U.K. Financial Services Authority, who will investigate how Libor is set and the possible sanctions for those that abuse it.

Changes still need to be made to the updated European Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation to ensure systemic resilience and advance risk management is supported, according to the International Swaps and Derivatives Association.

The Chinese authorities will wait until the development of the nation’s central clearing counterparty before rolling out an electronic confirmation matching system across the onshore yuan interest rate swap market.

Prior to Bob Diamond’s U.K. Treasury Select Committee hearing on the firm’s manipulation of Libor, commentators alluded to the impact Diamond’s comments would have on the integrity and career of Paul Tucker, deputy governor, financial stability at the Bank of England. Yet, Diamond’s comments were never in doubt.

David Wright, the recently appointed secretary general of the International Organization of Securities Commissions, plans to develop a research foundation.

Messaging protocols for many over-the-counter products that will be mandated to be cleared are already standardized, according to Philip Whitehurst, director of SwapClear product management at LCH.Clearnet.

Interbank over-the-counter U.S. dollar, Indian rupee forwards, fx swaps and other INR cross currency options will nee to be reported from July 9 to the Clearing Corporation of India’s newly developed trade reporting platform.

The U.S. Commodity Futures Trading Commission has re-proposed a rule that, if enacted, will expand the kinds of firms eligible for block trading by aggregating client funds. The original rule had a narrower base of firms.

Australia’s approach to mandatory clearing of over-the-counter derivatives will make it difficult to establish a domestic clearinghouse, moving clearing of Australian derivatives offshore and limiting the ability of local regulators to manage risk, according to industry officials.

The European Securities and Markets Authority has released a second consultation paper on its technical standards for the regulation of over-the-counter derivatives, central counterparties and trade repositories.