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Regulation

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  • The U.S. Department of the Treasury plans to start selling off its $142 billion portfolio of agency residential mortgage-backed securities, with the first batch of $10 billion expected this month.
  • The presidency of the Council of the European Union’s has proposed stronger rules segregating assets between central counterparties, clients and other CCPs in the proposed European Market Infrastructure Regulation.
  • The Financial Stability Oversight Council has asked market participants what criteria regulators should use to determine which clearinghouses are systemically important and therefore should be closely monitored by the Federal Reserve.
  • The Basel Committee on Banking Supervision has teamed up with the Committee on Payment and Settlement Systems to form a joint working group to revise the committee’s supervisory guidance for managing settlement risk in fx transactions.
  • The China Banking Regulatory Commission will likely take a stance on credit derivatives when it writes rules for local compliance with Basel III capital adequacy requirements.
  • European members of Parliament have moved to exempt fx and real estate businesses from forthcoming over-the-counter derivatives legislation in the E.U.