Most Clicked ISDA dailyLead Stories

1. Greece not expected to trigger CDS payout, but more tests loom

ISDA dailyLead | Jul 01, 2015

Greece's failure to repay the International Monetary Fund is unlikely to prompt a payout on credit default swaps covering the nation's debt, traders and analysts say. However, Greece could default on upcoming payments. "The country does not have sufficient liquidity to make bilateral and external debt payments [this] month, and that constitutes default and will trigger CDS contracts," said Louis Gargour, chief investment officer of LNG Capital. Bloomberg (07/01)

2. CFTC proposes cross-border treatment for margin rules

ISDA dailyLead | Jun 30, 2015

The Commodity Futures Trading Commission has proposed a rule for cross-border treatment of U.S. noncleared margin requirements. The proposal would capture nonguaranteed affiliates of U.S. entities in certain cases. "I think the rule today is a proper response to the concern that offshore swaps can result in risk flowing back into this country, whether or not they are guaranteed," CFTC Chairman Timothy Massad said. Reuters (06/29) Bloomberg Professional (07/01) The Wall Street Journal (tiered subscription model) (06/29) (subscription required) (06/30)

3. Basel Committee reviews CVA rules

ISDA dailyLead | Jul 02, 2015

The Basel Committee on Banking Supervision has announced a review of capital rules for credit-valuation adjustment. The panel aims to ensure drivers of CVA risk and CVA hedges are covered and that the rules align with fair-value measurement of CVA employed under various accounting regimes. Reuters (07/01)

4. Greece shutters banks, implements other capital controls

ISDA dailyLead | Jun 29, 2015

The Greek government has imposed capital controls, including closure of banks and the stock market, after the European Central Bank refused to increase emergency liquidity that has prevented the financial system from collapse. A referendum Sunday will decide whether Greece accepts an offer from international creditors, Prime Minister Alexis Tsipras says. The New York Times (tiered subscription model) (06/28) Kathimerini (Greece) (06/28) (France) (06/28)

5. Reasons for liquidity changes unclear, Fed's Tarullo says

ISDA dailyLead | Jun 26, 2015

Liquidity has shifted, but Federal Reserve Governor Daniel Tarullo sees no "precise and convincing explanation of exactly what has happened." Regulatory reform could be a factor, he says, but changes in market structure also might be a contributor. High-frequency trading has grown, and asset managers have a larger role, Tarullo says. Bloomberg (06/25)

6. Trading firms anxious about a minute with 61 seconds

ISDA dailyLead | Jun 29, 2015

Trading computers will face a minute that lasts 61 seconds at midnight Greenwich Mean Time on Tuesday, an adjustment to bring electronic time in sync with slowing of Earth's rotation. This is the first time the adjustment will happen during trading hours since financial markets went electronic. Experts are concerned whether large computers will handle it properly. Financial Times (tiered subscription model) (06/28) Bloomberg (06/29)

7. Industry considers change to bolster single-name CDS

ISDA dailyLead | Jun 30, 2015

Market participants are discussing reducing "roll dates" each year for single-name credit default swaps contracts to improve volume. Financial Times (tiered subscription model) (06/29)

8. N.Y. regulator reportedly examines rate-swaps market

ISDA dailyLead | Jun 29, 2015

The New York Department of Financial Services is investigating potential manipulation of a benchmark for U.S. interest-rate swaps, sources say. The department reportedly has not sent subpoenas or zeroed in on specific banks. Financial Times (tiered subscription model) (06/28) Bloomberg (06/28)

9. Singapore proposes mandatory clearing of OTC rate swaps

ISDA dailyLead | Jul 01, 2015

The Monetary Authority of Singapore is calling for feedback on a proposal to mandate central clearing of some over-the-counter interest-rate swaps. The proposal, which would apply to financial institutions that book at least S$20 billion of such derivatives, would cover only U.S.-dollar and Singapore-dollar contracts. The Business Times (Singapore) (free content) (07/01)

10. Case for ring fencing remains strong, Vickers says

ISDA dailyLead | Jul 01, 2015

John Vickers, leader of the British Independent Commission on Banking, has told a House of Lords committee that a requirement to ring-fence retail banking from trading is as necessary now as it was when drafted in 2011. An HSBC Holdings executive has told lawmakers the rule will cost the bank about £1.5 billion. Financial Times (tiered subscription model) (06/30) Reuters (06/30) Reuters (06/30)

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