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Regulation

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  • Even as corporates are given more freedom to conduct cross-border business from Shanghai’s Free Trade Zone, treasurers remain hesitant to set up shop so long as their mainland cash pool is segregated from their operations in the pilot zone.
  • The Central Bank of Bahrain (CBB) has drafted a new framework aimed at strengthening the solvency of takaful and retakaful firms and improving their operational efficiency.
  • In this week’s round up of offshore renminbi news, China’s central bank clarifies plans for the Shanghai Free Trade Zone, London gets a clearing service, and the RMB overtakes the euro as a trade currency.
  • Lawyers expect the U.S. government to issue an extended delay to the implementation of the foreign accounting tax compliance act, due to the burdensome requirements for financial institutions in complying.
  • Scott O’Malia, commissioner of the U.S. Commodity Futures Trading Commission, has called for the extraterritorial reach of U.S. derivative reforms to be scaled back in 2014 and for the U.S. to pursue a harmonized global framework of regulation through substituted compliance.
  • Australia’s financial services firms are not adequately investigating their client’s personal circumstances before recommending complex capital protected structured products, therefore not meeting guidance set under recent regulatory reforms, according to the Australian Securities and Investments Commission.