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February 21, 2013
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Daily coverage for the global derivatives industry

  Top Stories 
  • U.S. lawmakers plan to introduce transaction-tax bill
    Political momentum for a U.S. financial-transaction tax seems weak, but two Democrats -- Sen. Tom Harkin of Iowa and Rep. Peter DeFazio of Oregon -- stand ready to reintroduce a bill to tax bond and equity transactions at 0.03%. Derivatives would be taxed, too, at a yet-to-be-determined rate. Those in the industry say such levies would curb economic growth and shrink trading volume. The Trade News (U.K.) (2/20) LinkedInFacebookTwitterEmail this Story
  Industry News and Trends 
  • China works on master agreement for OTC derivatives
    Last year, the Securities Association of China outlined rules governing over-the-counter derivatives for securities companies. The China Securities Regulatory Commission has authorized issuance of the document. Equity-derivatives transactions would be covered under the master agreement, but renminbi interest-rate swaps trades would be addressed by the regular mandate of the People's Bank of China. FinancialCAD (Canada) (2/20) LinkedInFacebookTwitterEmail this Story
  • European banks eye higher capital ratios in recalculating risks
    Large European banks are recalculating risks in their trading books and loan portfolios to increase the ratio of capital to risk-weighted assets. Such recalculations are fairly standard, but analysts say some banks are accelerating the move amid increased pressure to bolster capital ratios as Basel III rules start coming into effect. The Wall Street Journal (2/21) LinkedInFacebookTwitterEmail this Story
  • FDIC's Hoenig seeks greater transparency on banks' risk exposure
    U.S. accounting laws that allow banks to account for less of their derivatives portfolios than their European peers do mask the big banks' true size, says Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig. "Derivatives, like loans, carry risk," Hoenig says. "To recognize those bets on the balance sheet would give a better picture of the risk exposures that are there." Bloomberg (2/19) LinkedInFacebookTwitterEmail this Story
  Regulatory Roundup 
  • Internal Libor review is coming soon, U.K.'s FSA says
    The U.K.'s Financial Services Authority has promised a parliamentary committee that it will publish an internal review of an investigation into manipulation of the London Interbank Offered Rate in the next few weeks. The Treasury Select Committee has expressed concern that despite the FSA's assertion that it worked with U.S. regulators, its investigation seemed to lag significantly. Meanwhile, Gary Gensler, chairman of the Commodity Futures Trading Commission, said that fraud continues to affect the way Libor is set. "We have a lot more work to do," said Gensler. Reuters (2/21), Bloomberg (2/21), BBC (2/21), The Wall Street Journal/Dow Jones Newswires (2/20) LinkedInFacebookTwitterEmail this Story
  • Australia issues financial-infrastructure guidance
    Australian regulators have provided guidelines for interpreting infrastructure principles from the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions as they apply to settlement and clearing. The regulators have revised guidance to be in accord with norms set by CPSS and IOSCO and have agreed to comply with future standards set by the organizations. The Trade News (U.K.) (2/20) LinkedInFacebookTwitterEmail this Story
The psychic task which a person can and must set for himself is not to feel secure, but to be able to tolerate insecurity."
--Erich Fromm,
German psychologist

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