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  • The Securities and Exchange Commission’s structured products unit will likely hire three industry professionals next month, Kenneth Lench, head of the unit within the Division of Enforcement, told Derivatives Week.
  • European lawmakers have proposed a ban on financial services employees being allowed to hedge their bonus payouts. The hedges popped up last season when deferred bonus payouts were being pushed by regulators and staffers.
  • The City of London should set the benchmark for how the over-the-counter derivatives and securitization markets should operate prior to the release of European legislation reforming both markets, according to Patrick Pearson, head of financial markets infrastructure at the European Commission.
  • Increased hedging by banks has been an influential factor behind moves in sovereign credit default swap spreads, according to the Bank of England.
  • The USD700 billion stable value fund market, which covers some 30 million investors, could become effectively off limits to derivative bankers.
  • The European Securities and Markets Association will be given the final say when determining whether different derivatives should be cleared following an application by a clearinghouse, according to the European Commission.