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Regulation

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  • A special hearing will be required to harmonize conflicting U.K. and U.S. judgments on the Dante collateralized debt obligation lawsuit after this week’s U.S. court ruling.
  • U.S. House Financial Services Committee Chairman Barney Frank (D-Mass.) this morning trashed industry arguments that over-regulation of the financial markets, including derivatives, could lead to the next financial crisis.
  • Hong Kong regulators may need to amend the country’s Securities and Futures Ordinance from 2002 to ensure comprehensive reform of over-the-counter derivatives. But the Securities and Futures Commission is in no hurry.
  • Dealers have formed a new working group to help boost flows in the contingent credit default swaps market. The group, comprising 23 dealer-only members of the International Swaps and Derivatives Association, met Jan. 19.
  • A coalition of major players in the over-the-counter derivatives market have agreed to a request from U.S and international regulators to define what constitutes a standardized OTC contract for each asset class.
  • The German government and its banking regulator Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin, look set to cap compensation for traders and other staffers responsible for taking risks on behalf of financial firms.