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Regulation

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  • European credit spreads rallied last week as the picture became clearer on the important bank stress tests.
  • Some clearinghouses will have to expand their compliance operations due to extra reporting requirements for standardised over-the-counter derivatives arising from forthcoming regulation, and more frequent visits from multiregional regulators, according to officials.
  • Lawyers are raising questions about the possible impact the Dodd-Frank Bill will have on non-U.S. firms who have business onshore in the U.S.
  • The Collins Amendment to the U.S. Dodd-Frank Act could impose higher capital requirements on derivatives than previously thought.
  • The introduction of a clearing threshold for non-financial users that take derivative positions in the E.U. would be regressive and lead to regulatory arbitrage, according to a submission from the European Association of Corporate Treasurers to the European Commission.
  • South Korea’s Ministry of Strategy and Finance is considering further reducing the amount corporates in the country can hedge on their currency risk