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November 12, 2012

Daily coverage for the global derivatives industry

Top Stories

U.S. regulators delay implementation of Basel III
The Federal Reserve and other regulators have decided to postpone implementation of Basel III capital rules for banks. The rules were supposed to go in effect Jan. 1. Regulators seek to align U.S. rules with standards determined by the Basel Committee on Banking Supervision. Bloomberg (11/9), MarketWatch (11/9), CNBC/The Associated Press (11/9)

Clearing of CDS on Markit index faces challenge
The Commodity Futures Trading Commission plans to initially include two index families, including the Markit iTraxx Europe index, in an upcoming clearing mandate. However, derivatives-market participants are facing an obstacle to clearing credit default swaps on the index. ISDA has called for a delay in iTraxx clearing. Risk.net (subscription required) (11/12)

Industry News and Trends

N.Y. Giants balk at Lehman's second attempt at subpoenas
Giants Stadium, an affiliate of the New York Giants, argues that one round of subpoenas served by Lehman Brothers Holdings regarding a derivatives fight is enough and that a second round is too much. "There is no doubt the Debtors have decided to object to the claims. ... it is simply not credible" that Lehman has yet to make a decision on the claims, according to the Giants' filing. Fox Business/Dow Jones Newswires (11/9)

Exchange aims to connect China to world's markets
The Hong Kong, Shenzhen and Shanghai bourses have launched an exchange that is meant to "connect the rest of the world to the trading markets in Hong Kong and mainland China," Jeremy Grant writes. Financial Times (tiered subscription model) (11/11)

NYSE hires risk chief for London clearing business
Financial News Online (U.K.) (subscription required) (11/9)

Regulatory Roundup

French banks worry about conflicts in swaps rules
French banks warned that they will face conflicting requirements next year on either side of the Atlantic Ocean as the Dodd-Frank Act takes effect. Specifically, banks that sign up to be swaps dealers in the U.S. will be forced to make disclosures that violate French statutes. Reuters/International Financing Review (11/9)

EU short-selling rules prompt confusion
The European Securities and Markets Authority turned pan-European rules on short selling into practical guidelines. The rules went into effect Nov. 1, prompting confusion among market participants. One point of frustration is an exemption for market-making firms and how that affects trading of newly issued securities. Financial News Online (U.K.) (subscription required) (11/12)

CFTC to get another court test with CME lawsuit
CME Group is suing the Commodity Futures Trading Commission over the reporting of nonpublic swaps-transaction data to third parties. CME's litigation is part of the industry's efforts to oppose Dodd-Frank Act measures. The New York Times (tiered subscription model)/DealBook blog (11/9), Reuters (11/9)

Commentary: Financial turmoil remains a concern
Last week's election results mean the U.S. is likely to continue with changes to the financial industry, but officials should be mindful of stoking more turmoil, Michael Mackenzie writes. Financial Times (tiered subscription model) (11/9)

SmartQuote

Excuses change nothing, but make everyone feel better."

--Mason Cooley,
American aphorist

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