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  • Exchanges have already begun the process of preparing to set up clearinghouse capabilities for over-the-counter derivatives in Canada, senior exchange officials told Derivatives Week.
  • A single European central counterparty backed by the European Central Bank is still being considered by some members of the European Parliament, according to Kay Swinburne, member of the Parliament’s Economic and Monetary Affairs Committee.
  • Some derivatives lawyers are working on a strategy for large endusers to snuff out the practice of rehypothecation—where dealers use collateral pledged by a customer to back the sellsiders own trades.
  • Chinese banks and state-owned enterprises are trying to restructure U.S. dollar/yen swaps that will have them paying out millions of U.S. dollars if the cross breaches JPY80 barrier and the yen continues to appreciate.
  • Firms would be prohibited from entering into credit default swaps that relate to an obligation of that firm’s home member state under new proposals floated in Europe.
  • Chinese banks have begun trading credit risk mitigation warrants, the second type of credit derivative to begin trading in China.