Derivs - Regulation

European lawmakers must ensure legislation concerning position limits for commodity derivatives trading is revised so that market liquidity isn’t damaged, according to E.U. parliamentary amendments to the Markets in Financial Instruments Directive.

The International Swaps and Derivatives Association and Securities Industry and Financial Markets Association are refusing to go down without a fight on the issue of exempting inter-affiliate swaps from the Dodd-Frank clearing mandate.

A Supreme Court Justice has handed down a decision that will allow for the streamlining of litigation over missed swap payments in certain cases.

The Hong Kong Monetary Authority’s relaxing of its offshore yuan net open position limits will inject greater liquidity into the market and allow institutions to better manage their fx positions.

The Depository Trust & Clearing Corp. is expanding into Singapore by establishing its first Asia-focused data centre, ahead of the Monetary Authority of Singapore’s finalized rules on mandatory over-the-counter clearing and data reporting.

The progression from voice-trading exotic options to electronic trading platforms will not be immediately transferable, according to a report by Aite Group, an investment research firm.

The disclosure of information in synthetic exchange traded funds related to collateral, embedded costs and counterparties needs to be greater, according to a report by Morningstar.

The Monetary Authority of Singapore is slowing down the roll out of its mandatory clearing rules, with September now the likely goal for a finalized framework.

Fund managers and commodity pool operators have received additional assurance from U.S. regulators regarding a ‘look-through’ provision that may have precluded them from entering into over-the-counter fx transactions for certain clients post Dodd-Frank implementation.

Department of Labor rules regarding prohibited transactions and fiduciary obligations will make it tough for swap dealers to clear over-the-counter swaps for pension plans under Dodd-Frank if guidance or exemptions are not provided. Implementation is slated for November and DoL often acts with glacial speed, which has the industry very concerned.

Japan is set to become the first country to implement mandatory clearing of over-the-counter credit default swaps and interest rate swaps. The Financial Services Agency will implement the first phase of the reforms from November, according to a draft of its detailed rules and cabinet office ordinance.

New anti-tax avoidance rules in India could snare foreign investors and dealers active in the country’s over-the-counter and offshore equity derivatives market.