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Regulation

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  • Minimum capital requirements for correlation desks should be excluded from upcoming European legislation, according to a draft report by Arlene McCarthy, U.K. member of the European Parliament and vice-chair of Europe’s Economic and Monetary Affairs Committee.
  • The U.S. Securities and Exchange Commission’s Division of Enforcement wants to hire two to three seasoned structured finance specialists for new posts in its structured and new products unit in Washington, D.C., New York and other SEC offices. The division is currently 1,000 strong.
  • Counterparties are increasingly requesting termination event clauses in documentation that can be triggered when a counterparty defaults, leading some observers to question whether the practice will expose the market to more systemic risk.
  • Another claim has been lodged today in the U.S. against UBS over Lehman Brothers-linked structured notes, alleging they were mis-sold. The claim filed by Naples, Fla.-based law firm Vernon Healy on behalf of a Houston businessman is for USD800,000 in compensatory and punitive damages.
  • Werner Langen, member of the European Parliament’s Economic and Monetary Affairs Committee, on Monday called for regulation of over-the-counter derivatives to distinguish between financial and non-financial institutions, with the former being more tightly regulated.
  • Regulators want to see a tape for capturing post-trade information on over-the-counter derivatives, akin to what is used in the equity markets.