| Daily coverage for the global derivatives industry |  |
- Formal review of European derivatives rules is possible
The European Parliament is considering requiring a formal review of derivatives regulation, sources say. "The draft resolution is being put together now," a source said. "There are legitimate concerns." The biggest issue pertains to exemptions for airlines and other nonfinancial firms that use derivatives. Reuters
(1/21)     
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| Industry News and Trends |  |  |
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- Bank exec discusses controversial risk measures
In this interview, Greg Wood, director of algorithmic execution for listed derivatives and foreign exchange at Deutsche Bank, discusses kill switches and other risk-management measures. "The idea behind risk-management checks that act as 'speed bumps' is to identify whether a client may be overtrading. ... We believe that there should be risk-management checks in every part of the electronic order flow that is practical," Wood said. Wall Street & Technology
(1/18)
- Volume heats up in coal derivatives
In the U.S. and Europe, coal derivatives are unexpectedly regaining popularity. Coal is becoming more popular in Europe because utilities are leaving oil-indexed natural gas behind. In the U.S., with shale gas on the rise, coal's value is more volatile than it has been for years. With the regions moving in different directions, derivatives are becoming a more popular hedging tool than cross-ocean supply agreements. Risk.net (subscription required)
(1/18)
- Post-trade tensions in securities are expected to mount
Virginie O'Shea, an Aite Group analyst, conducted an assessment of the securities industry and noted that post-trade tensions likely will increase this year. O'Shea identifies six of the biggest regulatory pressures weighing on the industry. The challenges include financial-transaction taxes, Basel III rules and other new regulations. The Trade News (U.K.)
(1/21)
| Regulatory Roundup | | |
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- BoE official calls for simpler alternative to Basel III
Andrew Haldane, executive director of financial stability at the Bank of England, has again spoken out about complex challenges in Basel III. "Regulators cannot really police this complex beast," he said. "There are moves afoot with the Basel Committee [on Banking Supervision] to seek ways to simplify and streamline the move to a proper regulatory, rather than self-regulatory, edifice." Haldane says the U.K. Financial Services Authority is ahead of the Basel Committee in developing a simpler model. Reuters
(1/21)
- EU plans to authorize financial-transaction tax
EU finance ministers are expected to allow 11 eurozone nations, including Germany, France and Italy, to proceed with a tax on financial transactions. Ministers are "expecting to take a decision to move forward, on an enhanced cooperation basis, the financial-transaction tax," Irish Finance Minister Michael Noonan said. Reuters
(1/21), Bloomberg
(1/22)
| ISDA News and Events | | |
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- CommodityFACT.org: 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 CommodityFACT.org, a website and blog.
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