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Regulation

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  • The New York insurance committee is circulating within the state assembly a draft bill that would ban naked credit default swaps and require any seller of CDS to obtain a credit default insurance company license.
  • A U.K. High Court judge ruled today that BGC Brokers, along with two of its senior executives in London, poached 10 employees from rival broker Tullett Prebon.
  • China’s National Association of Financial Market Institutional Investors (NAFMII) has informed a number of major Chinese banks they will be able to trade renminbi-denominated corporate credit default swaps referencing onshore names as part of a pilot scheme later slated for later this year.
  • A judge for the U.S. Bankruptcy Court for the Southern District of New York today approved a motion to transfer billions of dollars in impounded Lehman Brothers Holdings Inc. collateral to JPMorgan, but left the door open for Lehman to try and recover the monies at a later date.
  • Senator Chris Dodd (D-Conn.) has broadened the definition of major swap participant in his most recent financial reform bill. That has some end-users worried, but many observers think an expected amendment from Senators Jack Reed (D-R.I.) and Judd Gregg (R-N.H.) could change the definition again and create exemptions to the central clearing requirement.
  • Members of the European Parliament have admitted that a push by officials to ban naked sovereign credit default swap trading in the region may have been premature, given there is little U.S. support for such a ban.