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  • The European Parliament’s Economic and Monetary Affairs Committee has urged the European Commission to draw up legislation that would give the proposed European Banking Authority the power to sack management at cross-border financial institutions, including those managers who oversee a firm’s derivatives operations.
  • The definition of a swap execution facility was tweaked during the conference Thursday evening between the U.S. House of Representatives and U.S. Senate to include earlier drafted language that will likely capture voice-brokered trades.
  • The planned pilot project to trade credit default swaps in China will still happen this year, according to a well placed official in Beijing.
  • European insurers may increase longevity risk hedging via swaps under a set of proposed E.U. solvency rules.
  • -- Richard Schetman, partner at Cadwalader, Wickersham & Taft LLP
  • Last week there seemed to be a consensus among the commentariat that BP PLC’s five-year spreads were overshooting significantly. A level of 500bp was outlandish for a AA credit.