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Regulation

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  • Brazil’s major derivative dealers plan to lobby the government to change registration requirements to eliminate repetitive charges for the registration of derivatives trades.
  • The Financial Industry Regulatory Authority has begun testing whether broker/dealers have followed guidance it laid out last year for appropriately advertising reverse convertible notes.
  • Dealers and securities firms in China are looking at ways to give offshore investors synthetic exposure to A-shares outside of the Qualified Foreign Institutional Investor scheme, which puts quotas on each QFII and limits offshore synthetic exposure to delta one and long only.
  • Structured products are set to arrive in Brazil, with recently passed legislation allowing foreign and local firms to structure and distribute to local investors. Regulators are hashing out the details on which type of products will be permitted and firms have started beefing up their operations.
  • Newedge is looking at the roles it might play once rules that follow the Dodd-Frank Act go into effect.
  • Mutual fund firms are concerned about the possibility of being held responsible for reporting derivatives transactions with non-U.S. counterparties, according to Leigh Fraser, partner with Ropes & Gray.