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Regulation

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  • Officials from Deutsche Bank and JPMorgan defended the use of sovereign credit default swaps by market makers and end-users.
  • Industry officials have warned lawmakers that requiring mandatory interoperability between clearing houses could create contagion risks in the market, something regulators and firms are striving to avoid.
  • Non-financial corporates could be forced to cut staff if they are not exempted from over-the-counter derivatives and capital requirement regulations in Europe, corporate treasurers are warning lawmakers.
  • Asian fund of funds manager, Gen2Partners, is widening the investing mandate of its flagship Explorers Fund.
  • The fight isn’t over on the U.S. Senate Financial Reform Bill, despite Republicans successfully blocking a vote on bringing the bill, which would bring sweeping restrictions to over-the-counter derivatives, to debate last night. Democrats will force two more votes today and tomorrow.
  • European politicians are proposing that firms pay the bulk of bonuses in subordinated debt and that the proposed European Banking Authority be given the authority to require firms to disclose bonus payments.