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Regulation

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  • ISDA and Markit have added to the portfolio of tools available on ISDA Amend to help market participants prepare for a change in segregation rules that come into force on May 5.
  • The Securities Industry and Financial Markets Association has submitted comments to numerous regulatory agencies surrounding margin requirements for non-centrally cleared swaps and security-based swaps, with one being adopting a weekly initial margin schedule to minimise disruptive margin disputes.
  • The European Commission continues to delay its decision on money market fund (MMF) regulation, adding to an already tough environment for the funds.
  • The fast-approaching implementation of the Bank Recovery and Resolution Directive (BRRD) forced Moody’s and Fitch to overhaul their covered bond ratings this week, to reflect the protection which covered bonds get in the latest draft of the legislation.
  • The Bank of England is consulting on rules to ensure that even bonuses which have already vested can be clawed back, in addition to its existing powers to stop payment of unvested bonuses.
  • Spanish banks will be able to issue structured covered bonds under planned changes to corporate finance law, Moody’s said on Monday. The law change would enable issuers to structure dual recourse instruments with conditional pass-through mechanisms backed by a wide range of assets issued from special funds.