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Regulation

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  • The International Monetary Fund says it supports giving European regulators the authority to cap loan-to-value ratios as a way of helping prevent housing-market bubbles.
  • The European Parliament’s economic committee has delayed a final vote on the European Market Infrastructure Regulation for a month.
  • The European Commission is grappling with the issue of whether the European Securities and Markets Authority has the power to determine which over-the-counter derivatives must be centrally cleared.
  • The Brazilian federation of banks has started a trade information service that allows sellsiders to look up end user derivative positions before trading with them.
  • A group of dealers, buysiders and industry associations, including the International Swaps and Derivatives Association, have promised regulators they will publish new equity derivatives definitions in May and set up an equity determinations committee by mid-2012.
  • A week after approving the British clearinghouse LCH Clearnet to clear swaps for American mutual funds, the Securities and Exchange Commission has also given no- action relief to the Chicago Mercantile Exchange to do the same.