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Regulation

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  • The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act in the summer of 2010 made an impact both in the U.S. and internationally. Dodd-Frank altered the landscape of the capital markets through an imposition of vast federal regulation.
  • Indian banks using over-the-counter derivatives will be hit with a credit value adjustment risk capital charge on top of the capital charge for counterparty default risk, under draft guidelines to implement draft Basel III proposals in the country.
  • The Financial Industry Regulatory Authority has launched a sweep looking at how broker/dealers handle spread-based structured products, giving compliance officers a warning that they need to make sure suitability, sales and training policies and procedures are up to scratch in this complex area.
  • Fragmentation of the Asian derivatives markets and the ability of end users and dealers in Europe and the U.S. to access them will be the main focal point of 2012, as local regulators press on with the establishment of clearinghouses and trade repositories.
  • The Gulf Bond and Sukuk Association (GBSA) this week released what it claimed was the first detailed compendium of the nascent markets for local currency government-issued instruments in the Gulf region.
  • The scope of Japan’s domestic clearing obligations should be limited to yen interest rate swaps based on LIBOR, basis swaps and credit default swaps on iTraxx Japan, according to the International Swaps and Derivatives Association.