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January 24, 2013
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Daily coverage for the global derivatives industry

  Top Stories 
  • WFE reports a decline in equity-derivatives trading
    Equity-derivatives trading volumes declined last year, led by a 40% drop for stock-index options, a World Federation of Exchanges report says. "Derivatives markets were affected from the continued low interest-rate environment and the significant decrease of volatility," the report says. Bloomberg (1/23) LinkedInFacebookTwitterEmail this Story
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  Industry News and Trends 
  • Deutsche Boerse seeks to offset reduced trading volumes
    Deutsche Boerse is seeking to reduce expenses because trading volumes have declined, sources say. The exchange's management board and supervisory board are expected to discuss cuts next month, according to one source. Derivatives trading on the exchange dropped 18% last year. Reuters (1/23) LinkedInFacebookTwitterEmail this Story
  • SGX aims to be early adopter of derivatives rules
    Singapore Exchange's quarterly results statement says it is on track to meet regulatory and risk-management standards for derivatives clearing as outlined by the International Organization of Securities Commissions and the Committee on Payment and Settlement Systems. SGX also says it is seeking formal recognition from the Commodity Futures Trading Commission for its derivatives exchange and clearinghouse. The Trade News (U.K.) (1/23) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • Small banks might be hardest hit by Europe's transaction tax
    Major banks, which often have operations in Zurich or London, are not expected to be significantly affected by Europe's financial-transaction tax and will have an easier time shifting trading activity, experts say. Meanwhile, smaller banks might bear the brunt of the cost. "The idea ... is not the brightest," said Chas Roy-Chowdhury of the Association of Chartered Certified Accountants. "Banks in countries that have adopted the FTT will have the minimum level of transactions and will shift as much as possible to London." Reuters (1/23) LinkedInFacebookTwitterEmail this Story
  • Bill on financial-product tax changes is expected
    The chairman of the House Ways and Means Committee is expected to release proposed changes to the taxation of financial products, including derivatives, a source said. "Today's marketplace features a wide array of products that can result in different tax or financial accounting treatment of economically similar products, including debt, equity -- and mixtures of the two -- and financial derivatives, such as options, futures, and forward contracts and swaps," Chairman Dave Camp said. Bloomberg (1/23) LinkedInFacebookTwitterEmail this Story
  • Dodd-Frank is less than half implemented, GAO says
    The Government Accountability Office says in a report that less than half of Dodd-Frank Act rules had been implemented by the end of 2012. The GAO blames the complexity of the task as well as difficult coordination by overlapping and interconnected regulators. "Although regulators have established mechanisms to facilitate coordination ... several regulators indicated that coordination increased the amount of time needed to finalize rulemakings," according to the report. Reuters (1/23) LinkedInFacebookTwitterEmail this Story
  ISDA News and Events 
  • Climate shocks cause price shocks
    A Jan. 4 article in The Telegraph discusses how the managing director of Waitrose, a major U.K. supermarket chain, expects prices could spike 5% because of substandard crop yields and the attendant supply shortage. The article goes on to say that this kind of shock might be, as the saying goes, "the new normal." Quoting the U.K. government's chief scientist, John Beddington: "There is going to be another billion people on the planet in 13 years' time. ... That is going to increase demand for food." ISDA believes it's important to understand and know the facts about commodity-price changes and volatility. That's the reason we developed, a website and blog. LinkedInFacebookTwitterEmail this Story

An exaggeration is a truth that has lost its temper."
--Kahlil Gibran,
Lebanese-American artist, poet and writer

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