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  • The Hong Kong Securities and Futures Commission today warned investors over the inherent counterparty risk associated with synthetic or swaps-based exchange-traded funds, including those that use over-the-counter derivatives to track an index.
  • China’s financial markets and derivative regulatory framework is too fragmented and must be consolidated as it creates an undo burden on several market participants, said Yong Li, compliance director at China Universal Asset Management Co. at the Derivatives Asia 2010 conference last week in Beijing.
  • Proposed guidelines from the Commission of European Securities Regulators on how structured undertakings for collective investments in transferable securities (UCITS) measure risk and calculate exposure could impact the amount of collateral counterparties have to post when entering derivatives trades with the funds.
  • The International Swaps and Derivatives Association has kicked off a working group devoted to updating its Financial products Markup Language software’s reporting view.
  • Deutsche Bank officials have criticized Securities and Exchange Commission and Commodity Futures Trading Commission plans to curb industry ownership and governance of derivatives clearing organizations and other such entities.
  • A key component of the China’s derivative market development plan is avoiding mistakes seen in the U.S., Xuecheng Jing, the former deputy director of the research bureau at the People’s Bank of China said at the Derivatives Asia 2010 conference in Beijing this week.