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Regulation

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  • The Federal Reserve Bank of New York announced that it will raise margin requirements on 21 primary dealers in mortgage-backed securities transactions.
  • Legislation aimed at facilitating the establishment of South Korea’s central clearing counterparty has failed to be passed in the country’s parliament.
  • Commodity Futures Trading Commission Commissioner Scott O’Malia (R) yesterday submitted a letter to the Commission’s Technology Advisory Committee calling for advisement on a specific set of data points which he believes should define high-frequency traders.
  • A proposed European Union financial transaction tax from the European Commission could increase hedging costs and ultimately mean risks being left unhedged if the rule is imposed in the region, according to the International Swaps and Derivatives Association.
  • Bid/ask spreads will increase by 0.2%, implementation costs will exceed USD750 million, and ongoing operational costs will exceed USD250 million in implementing the proposed regulatory mandate for electronic execution into the over-the-counter interest rate swaps and options market, according to a International Swaps and Derivatives Association cost-benefit analysis published today.
  • National Association of Financial Market Institutional Investors credit default swaps definitions will contain a simplification of the cash settlement mechanism, doing away with weighted averages and replacing them with multiple valuation dates.