Capital Markets Advisors

Written by: William Mitting Mifid II plans could force thousands of foreign firms out of Europe Provisions within Mifid II to regulate direct electronic access could result in thousands of non-EU firms ceasing trading on European derivatives markets. The European regulator Esma is currently consulting on the technical standards that will form the basis of the implementation of the Markets in Financial Instruments Directive or Mifid II. Central to the… Read More »

06.19.2014 Swap dealers are facing new rules for calculating margin for uncleared swaps, i.e., those swaps that are executed and settled bilaterally rather than being centrally cleared. The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have established a December 2015 deadline for national regulators to come up with rules that conform to guidelines issued by BCBS/Iosco in September of last year for calculation of initial… Read More »

By Simon Johnson, Financial Times Financial shadows are dangerous. Even more dangerous are interactions between poorly understood shadows and essential financial intermediation activities. And most dangerous is when officials and private sector executives encourage a class of transactions that supposedly provide modest risk mitigation, while really building a disguised form of systemic risk on a grand scale. It was not mounting losses at Countrywide, the failure of Lehman Brothers or the… Read More »

A JWG analysis. MiFID I was all about creating a common set of rules for the single market.  Along the way, it asked regulators to track market abuse.  They duly set up a system of transaction reporting that all feeds into Paris – 70% of it via the UK.  Seven years and millions in fines for poor reporting practices later, the system sort of works for spotting bad behaviour. Then,… Read More »

Anish Puaar 12 Jun 2014 LCH.Clearnet has become the first UK-based clearing house to receive approval under incoming European derivatives rules, as the region continues to prepare for the introduction of mandatory swap clearing. LCH.Clearnet Limited, the UK arm of the clearing house which is majority-owned by the London Stock Exchange, is the biggest clearer of interest rate swaps globally and becomes the seventh clearing house to receive approval under… Read More »

Author: Luke Clancy Source: Hedge Funds Review | 12 Jun 2014 Asia-Pacific posited as an attractive location for OTC derivatives as the costs of doing business in the US and Europe begin to mount following regulatory intervention Is Asia-Pacific the new breeding ground for hedge funds? Asia-Pacific-based firms represent approximately 13% of all hedge fund managers tracked by data provider Preqin, although these firms represent less than 4% of total… Read More »

European regulators are laying the groundwork for a derivatives market that will lead to greater benefits for non-European banks, according to Kim Taylor, president of CME Clearing. Taylor made the commnts at the International Derivatives Expo in London today as EU regulators continue to stall in their authorisation of non-EU clearinghouses. Taylor said that the failure of the European Securities and Markets Authority to approve non-EU clearinghouses as equivalent will… Read More »

Author: Mark Pengelly Source: Energy Risk | 11 Jun 2014 A lack of guidance on the swap dealer provisions of the US Dodd-Frank Act is turning compliance into a guessing game for swap dealers such as Cargill Risk Management, suggests the firm’s chief compliance officer in a video interview A lack of sufficient guidance on key provisions of the US Dodd-Frank Act means swap dealers are being left in the… Read More »

Anish Puaar June 9th,  2014 The attempt by Nasdaq OMX to launch a derivatives market in Europe is a year old and it has been trumpeting its progress in building liquidity. However, data seen by Financial News shows that the majority of its trading in Euribor contracts is taking place in two narrow time windows each day in a way that allows firms to collect a share of the £50,000-a-week… Read More »

06.04.2014 The majority of buyside firms are considering outsourcing collateral management according to a new survey from Sapient Global Markets, which provides business and technology services for capital and commodity markets. The Sapient Global Markets 2014 Collateral Survey found that 43% of buyside firms are currently using an external collateral manager, as outsourcing can help firms to become compliant with new regulations and reduce cost. The report also said that… Read More »