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Regulation

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  • A European Central Bank recommendation for the European Securities and Markets Authority to set up a trade repository-like mechanism for collecting information on net short positions appears to be the regulators’ way of tying together disparate pieces of regulation.
  • Shawn Bernardo is vice chairman of the Wholesale Markets Brokers’ Association Americas and is also managing director and head of electronic broking for the Americas at Tullett Prebon in New York. He spoke to Associate Reporter Mike Kentz on the aspects of current regulatory proposals in the U.S. aimed at SEFs.
  • Regulatory attempts in Europe to require specific payout profiles in base prospectuses or prospectus supplements for retail structured products would be detrimental to improving product transparency, according to the European Structured Investment Products Association.
  • The bankruptcies of several large institutions have highlighted a potential ambiguity within the International Swaps and Derivatives Association’s Master Agreement relating to Section 2(a)(iii). Specifically, several courts have addressed the issue of whether a party can exercise its rights under Section 2(a)(iii) to withhold payment indefinitely following the bankruptcy of its counterparty without declaring an Early Termination Date. This article compares the recent rulings and offers some negotiating options for counterparties to consider.
  • The China Banking Regulatory Commission is considering setting risk capital for derivatives on a firm-by-firm basis.
  • The Canadian Securities Administrators has beefed up its proposals for introducing securities regulatory oversight of credit rating organizations.