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Clearinghouses should cap to the amount members will have to contribute to replenish a default fund in the case of a failure, Deutsche Bank’s systemic risk management director Robert Lee said on the 2012 International Swaps and Derivatives Association North America Conference in New York last week.

The Federal Reserve’s decision to go ahead with the third round of quantitative easing has boosted some emerging markets currencies

The 8% of initial margin futures commission merchants will have to pay into clearinghouse default funds may be too high for some to afford. This will disincentivize market participants from offering clearing services, according to Robert Lee, director of systemic risk management at Deutsche Bank.

Swap trades will get smaller as counterparties tackle clearing requirements and look to cut costs, according to a panel at the International Swaps and Derivatives Association conference in New York yesterday.

Despite missing an upgrade from Fitch due risks associated with their exposure to rising commodity prices, Korean agency issuers will continue attracting investors seeking higher yields.

The RBI’s decision to raise the external commercial borrowing ceiling will lower funding costs for SMEs but the failure of many corporations to hedge will put them at risk from FX volatility.

A financial transaction tax for securities and derivatives transactions would be unsuccessful and end up damaging the financial landscape, according to panellists at the Swiss Futures and Options Association's 33rd Bürgenstock meeting in Interlaken, last week.

Regulators have called for greater debt issuance to finance mainland infrastructure projects, yet quirks within the onshore debt capital market will delay the entrance of true project financing bonds.

Asiamoney PLUS highlights the latest job changes from across the fixed income and financial markets.

A group of central bankers, portfolio managers and investment bankers came together in mid-August 2012 to discuss the covered bond market in the context of the sovereign debt crisis. Despite a fundamental belief in the soundness of the covered bond product, the roundtable participants warned of the dangers of the inextricable link between a sovereign entity, the issuers within its jurisdiction and their covered bond programmes.

Europe’s politicians have not dared to formulate a viable rescue mechanism for the euro. The European Central Bank’s Mario Draghi has now done it for them, ending the phase of can-kicking. Whether Europe is strong enough to hold together remains unclear, but at least the decision can no longer be deferred.

India is famously ambitious with its plans and its view of the ECM market is no exception. It has moved a step closer to hitting its target for divestments this year, after sending three requests for proposals to banks. But its aim to increase freefloats across the equity market in less than a year looks increasingly unachievable.