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Regulation

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  • Market participants appear resigned to the fact the Hong Kong Securities and Futures Commission is unlikely to budge on a number of contentious plans to overhaul the unlisted structured products market.
  • A Financial Industry Regulation Authority arbitration panel’s decision to force UBS to compensate an investor to whom the bank sold Lehman Brothers-backed structured products appears on the face of it a troubling development for sellsiders, but some industry officials say they aren’t worried.
  • Tomorrow the U.S. House of Representatives will debate its comprehensive financial reform package, which includes the reconciled over-the-counter derivatives bill.
  • Foreign banks are requesting that warranties be written into their over-the-counter derivatives contracts with Chinese counterparties as a means of mitigating regulatory risk.
  • The U.S. House Financial Services Committee and House Agriculture Committee have drafted a reconciled over-the-counter derivatives bill that they are planning to introduce as an amendment to the omnibus financial reform bill this week.
  • The International Swaps and Derivatives Association has hired Davis Polk & Wardwell to spearhead drafting of the upcoming 2010 Equity Derivatives Definitions.