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  • The type of counterparty dealers face may account for split view among dealers in a Federal Reserve Board survey that found players were evenly split between those tightening and those relaxing margin for exotic credit derivatives.
  • Net derivative liabilities, under Basel II standards, will be taken into account when calculating a firm’s U.K. bank tax, according to a consultation released by H.M. Treasury today.
  • The Malaysia Deposit Insurance Corporation is proposing to ease the process of close-out netting.
  • The New Zealand Ministry of Economic Development has issued a consultation paper that proposes to overhaul existing derivatives regulation in the country.
  • Registered funds that use exotic, riskier derivatives would have to set aside more assets to counterbalance their trades than plain vanilla users under a newly floated proposal.
  • Sponsors and originators of securitizations will not be allowed to hedge against the 5% retained slice under the latest guidelines for article 122a of the capital requirements directive II. Banks issuing deals will have to be fully exposed to the risk of retaining the 5% of their transactions, more commonly referred to as “skin in the game,” according to last week’s Committee of European Banking Supervisors consultation paper on the issue.