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Regulation

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  • Javelin Capital Markets, an electronic trading venue planning to register post-reform as a swap execution facility, has provided regulators with specific threshold levels for block trading in interest rate swaps and credit default swaps.
  • The Committee of European Securities Regulators is against client categorization rule changes for over-the-counter derivatives proposed under the Markets in Financial Instruments Directive.
  • Buyside firms may begin turning to local dealers as counterparties in individual Asian markets over international dealers, as coming regulation pushes more Asian derivatives activity onshore.
  • Panelists of a joint Securities and Exchange Commission/Commodity Futures Trading Commission hosted roundtable this morning tackled questions of access to risk management strategies for clearing parties and possible conflicts of interest within the clearing process.
  • ISDA members have come to a provisional consensus to alter the definitions regarding the right of termination with respect to a disruption event in the case of a change in law.
  • European dealers are warning the definition of covered positions in credit default swaps must be kept flexible lest some trades be seen as falling outside the regime introduced by the European Commission.