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Regulation

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  • A letter from a former rating agency official regarding the treatment of securitization swaps in Regulation AB II may have played a key role in delaying the final vote on the rule, according to communications viewed by Securitization Intelligence.
  • The International Swaps and Derivatives Association’s new credit definitions will go live in September 2014.
  • Market participants have hit back at requirements for record keeping and market soundings in their responses to a European Securities and Markets Authority consultation on possible implementing measures for the Market Abuse Regulation.
  • The ban on uncovered sovereign credit default swap trading in Europe could permanently impair E.U.-regulated sovereign CDS markets and cause further market stress when combined with European Central Bank tapering, bank failure and lack of liquidity.
  • Market participants have returned to voice trading of swaps since swap execution facilities went live in the U.S. on Nov. 1, resulting in a drop in volumes on electronic trading platforms.
  • The Korea Exchange will encourage asset managers later this year to use volatility futures as underlyings for exchanged-traded products, such as exchange-traded funds or exchange-traded notes.