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Regulation

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  • Europe should set position limits for the over-the-counter derivatives market, according to Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission.
  • A group of sellside and buyside institutions has formed the Swaps and Derivatives Markets Association to push for equal access to swaps clearing among dealers of all sizes.
  • Purported linkage between Greece’s fiscal woes and naked credit default swaps this week dealt a fresh blow to the G14 derivatives dealers, who had seemingly gained some ground after committing to regulators to bring more transparency to the CDS market.
  • Speakers on the regulation panel gave delegates their two cents on what they expect to see in forthcoming legislation, and how far discussions on Capitol Hill have gone. “After a quiet period, we think you’re going to see a lot of activity in the next six to eight weeks,” said Cory Strupp of SIFMA.
  • Members of the U.K. House of Lords have opposed the set-up of a Europe-wide default fund to stave off a clearing house collapse.
  • Andrew Feldstein, ceo and cio of BlueMountain Capital Management, said on the regulation panel at Markit’s OTC derivatives seminar Tuesday that markets need to get used to the idea of certain systemically important and interconnected companies being too big to fail.