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  • Sovereign spreads hit a new record on Friday, despite the best efforts of European Union governments to stem the panic.
  • Korea has vowed to support financial markets and ensure sovereign credit default swap spreads and non-deliverable forward rates recover. The two rose sharply after the North Korean attack on Yeonpyeong Island.
  • European Union lawmakers want to hand to a pan-European securities regulator power to directly fine credit rating agencies for breaches of operating and reporting rules, as well as the ability to carry out random checks on ratings and conduct deeper assessments of their methodologies.
  • Banks are expected to start piling into trades to cover mismatches in their structured credit books.
  • Interdealer brokers are concerned over speculation the Commodity Futures Trading Commission will impose rules that allow swap execution facilities to access other SEFs, according to Chris Giancarlo, executive v.p. of corporate development at GFI Capital.
  • The China Banking Regulatory Commission will reportedly allow banks to use credit derivatives for market-making and hedging purposes when it releases its expected guidelines, a change from earlier drafts.