On July 24 the Financial Stability Board, the international body that coordinates financial sector reforms under the authority of the Group of 20 nations, published its ninth progress report on the global implementation of derivatives market reforms.
CONTINUE READINGU.S. regulatory agencies issued a joint report in July on their analysis of an extraordinary wave of trading in the Treasury market on Oct. 15. On that day, the prices of Treasury bonds and Treasury futures made a very large swing in just 12 minutes, with no obvious catalyst, prompting widespread concern about the potential for further volatility.
CONTINUE READINGThe Australian Securities Exchange has selected Nasdaq’s Sentinel Risk Manager solution to manage real-time risk across its two clearinghouses. The system is expected to be implemented in five phases over the next two years and will include real-time margin calculation, cross-margining calculations and related customer risk analytics.
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CONTINUE READINGSweden’s Orc Trading has teamed up with Galaxy Futures, a Chinese broker, to offer access to China’s nascent options market.
CONTINUE READINGThe CFTC’s Division of Market Oversight held a public roundtable on July 15 to discuss the “made available for trade” process for determining which swaps should be subject to the CFTC’s mandatory trading requirements.
CONTINUE READINGGallery - IDX 2015 – 8th Annual FIA/FIA Europe International Derivatives Expo
CONTINUE READINGOn Sept. 28 the government of India formally unveiled the merger of the Forward Markets Commission and the Securities and Exchange Board of India. The merger was proposed in February as a way to strengthen regulation of commodity markets by bringing commodity derivatives under the same regulatory framework as securities and financial derivatives. As part of the merger, SEBI has amended its regulations to cover exchanges and brokers in the commodity derivatives markets and has created a separate department for commodity derivatives market regulation.
CONTINUE READINGThe European System of Central Banks issued a statement on Aug. 25 expressing opposition to any change in EU regulations that would give central counterparties an automatic right of access to central bank liquidity. The statement emphasized that the current legal framework allows each central bank to determine for itself which facilities it wishes to offer to CCPs and defines the conditions for such access. An automatic right to central bank liquidity “would create moral hazard on an extraordinary scale,” the ESCB warned. The statement was issued in response to a European Commission consultation on possible changes to EMIR.
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