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Regulation

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  • The Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions released a consultative report this morning asking market participants if central counterparties should be mandated to hold enough capital to cover the credit and liquidity risk of one or both counterparties in a given trade.
  • Deutsche Bank has reportedly suspended two senior equity derivative traders in Hong Kong.
  • Proposed Commodity Futures Trading Commission rules on portfolio reconciliation may a heavy burden if applied to certain international firms, specifically those in Asia, who have only recently begun the practice.
  • France’s Autorité de Contrôle Prudentiel, which regulates banks and insurance companies, has been quietly imposing stricter rules on regulatory capital trades over recent weeks.
  • Hong Kong regulators want to mandate that all locally-incorporated financial institutions report all OTC derivatives trades to the coming local trade repository in Hong Kong.
  • Firms that sell complex, risky products to retail investors should ensure their representatives are giving customers concrete, easy-to-grasp explanations of how such investments might operate under changing market conditions, according to Richard Ketchum, president and CEO of the Financial Industry Regulatory Authority.