Payout appears unlikely for holders of SNS Reaal CDS | CDS index rebalance is expected to highlight European landscape | Swaps-clearing mandate is expected to reduce bank profits
Web Version
March 12, 2013
ISDA dailyLead
Daily coverage for the global derivatives industry

Top StoriesSponsored By
ESMA: Gradual implementation of derivatives rules is needed
European Securities and Markets Authority Chairman Steven Maijoor says derivatives rules need to be rolled out gradually, so implementation might extend into next year. He also notes a need for U.S. and European regulators to minimize cross-border issues but says there will still be differences. "We are trying to align as much as possible to avoid regulatory competition, regulatory gaps. ... This is still a difficult issue; there is some good progress, but there is still a gap," he said. Reuters (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
Payout appears unlikely for holders of SNS Reaal CDS
Investors who hold credit default swaps on SNS Reaal, a Dutch lender nationalized last month, are likely to face losses, despite a decision by ISDA's Determinations Committee for a payout. Some bondholders were wiped out by the nationalization, and options for compensating CDS holders are shrinking, experts say. The Wall Street Journal/Dow Jones Newswires (3/11), Financial Times (tiered subscription model)/FT Alphaville blog (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
SwapClear is LCH.Clearnet's global clearing service for interest rate swaps. We have over 12 years’ experience, unparalleled risk management and more clearable IRS products than any other clearing house. That's just part of what earned LCH.Clearnet AFTA Best Risk Analytics Initiative and FOW's Clearing House of the Year awards for 2012.
Industry News and Trends
CDS index rebalance is expected to highlight European landscape
Markit Group is poised to adjust indexes for credit default swaps, likely highlighting the two-tired nature of Europe's corporate-bond market. The indexes will change March 20. The Wall Street Journal/Dow Jones Newswires (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
Swaps-clearing mandate is expected to reduce bank profits
Sanford C. Bernstein & Co. says the rules that began Monday requiring the central clearing of over-the-counter derivatives may reduce pretax margins by a third at bank trading units. JPMorgan Chase has said the regulations spawned by the Dodd-Frank Act will cost it $1 billion to $2 billion in revenue. At least three dealers say they're worried about being swamped by the surge in cleared trades. Bloomberg (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
Expanding oil refining in Asia stokes derivatives trading
China overtook the U.S. in December as the world's largest importer of crude oil. As a result, Asia is gaining clout in derivatives trading tied to oil and other refined products. And as the region ramps up its refining capacity, that clout is expected to continue. (subscription required) (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
Thai firm sees increased demand for equity derivatives
Siam Commercial Bank Securities plans to issue 3 billion baht in over-the-counter options, 3 billion baht worth of equity-linked notes and 1 billion baht in derivatives warrants. "We believe the whole market will increase by two or three times with all the banks looking to focus more on equity-linked notes, OTC options and derivative warrants," Deputy Managing Director Kawin Sangvichien said. "Trade in derivative warrants this year is expected to rise to 100 billion baht, from 69 billion in 2012." (subscription required) (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
Regulatory Roundup
Japan grants DTCC license for OTC derivatives data warehouse
Depository Trust and Clearing will become the first to operate a data repository for over-the-counter derivatives in Japan after receiving regulatory approval. Financial Times (tiered subscription model) (3/11)
Share: LinkedIn Twitter Facebook Google+ Email
Bank says Libor should be set by deals, not estimates
Barclays supports tying benchmarks such as the London Interbank Offered Rate to actual transactions, instead of estimates. The bank says in a letter to the International Organization of Securities Commissions that administrators of financial benchmarks should have little or no say in setting the level. "Reporting transactions or tradeable prices available to the market would serve to reduce conflicts, especially as trades are already subject to a clear and robust regulatory framework," according to the letter. Bloomberg (3/12)
Share: LinkedIn Twitter Facebook Google+ Email
True merit, like a river, the deeper it is, the less noise it makes."
-- Edward Frederick Lindley Wood,
British politician
Share: LinkedIn Twitter Facebook Google+ Email
Learn more about ISDA® ->Home | Conferences | Latest News | Bookstore | Join ISDA | Determinations Committee
ISDA® is a registered trademark of the International Swaps and Derivatives Association, Inc.
Subscriber Tools
Please contact one of our specialists for advertising opportunities, editorial inquiries, job placements, or any other questions.
Lead Editor:  Sean McMahon
Advertising:  Abiy Bekele
  P: 919.931.5915

Download the SmartBrief App  iTunes / Android
iTunes  Android
Mailing Address:
SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004
© 1999-2013 SmartBrief, Inc.®
Privacy policy |  Legal Information