Increases in margin requirements in the oil, agriculture and metals markets over the past five years have resulted in a significant shift in hedging practices from futures to options.
CONTINUE READINGA recent policy document details the return of the UK’s recognition approach for regulating cross-border business that the UK helped develop nearly forty years ago. This nuanced change would unlock tremendous capacity for our industry to grow and return our markets to a more outcomes-based approach that could kick-start productivity in our global markets.
CONTINUE READINGFIA supports replacing the market share test with an annual threshold test, but raises concerns about the suggested inclusion of trading venue activity. Doing so would add complexity, increase compliance costs, and reduce UK competitiveness relative to the EU and the US, where only non-venue derivatives are counted.
CONTINUE READINGIn a letter filed with the Securities and Exchange Commission, the FIA Principal Traders Group (FIA PTG) offered additional comments on the SEC's Definition of a Dealer proposal. FIA PTG said that while it appreciates the importance of the proposal's stated goals to prevent market disruptions and support market transparency, integrity, resiliency, and investor protection, it fails to see how this proposal addresses any of those issues in a meaningful way.
CONTINUE READINGThe US Commodity Futures Trading Commission held a meeting of the Market Risk Advisory Committee on 11 December to discuss several current policy issues affecting the derivatives industry.
CONTINUE READINGWorldwide volume of exchange-traded derivatives reached 13.98 billion contracts in November, the highest level ever recorded. This was up 2.7% from October 2023 and up 80.3% from November 2022.
CONTINUE READINGThe Commodity Futures Trading Commission has proposed a rule to require futures commission merchants, swap dealers and major swap participants to establish an “operational resilience framework.”
CONTINUE READINGThe Commodity Futures Trading Commission is attempting to update its regulatory framework for derivatives clearinghouses to address the rise of new business structures that integrate certain functions that previously were separated. The agency’s five commissioners disagree on the way forward, however, with some calling for moving forward one step at a time and others urging a slower, more comprehensive approach. Two pending proposals have brought these differences to light.
CONTINUE READINGWhile the Sustainable Finance Disclosure Regulation intends to ensure investments are environmentally and socially responsible, current restrictions on ETDs may inadvertently hinder progress, paper says.
CONTINUE READINGPanel looks at improving access to futures markets for small and mid-size farmers.
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