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- Experts discuss possible ways to overhaul Libor
The American Enterprise Institute asked a group of experts, including ISDA CEO Robert Pickel, to discuss proposals for resolving issues plaguing the London Interbank Offered Rate and other benchmarks. Alex Pollock of AEI offered a bit of history of how Libor came to be and how it has emerged as probably the world's most important index. The experts differed on many points but expect adjustments to be made to Libor's administration. However, deals might be drafted to rely on alternative benchmarks, they said. NewsMax.com/Moneynews
(11/29)     
- CME ends legal challenge against CFTC; DTCC questions proposal
CME Group has dropped its challenge to the Commodity Futures Trading Commission's proposed rules on reporting trade data, but Depository Trust and Clearing is voicing concerns about the agency's proposed change to a swaps-data reporting rule. The move would make it easier for CME to keep the swaps data of its customers to itself rather than sending it to a third-party swaps-data repository. "This action is inconsistent with the Commission's previous actions, and will cause market participants to question the finality of any Commission rule or interpretation," the DTCC said. Bloomberg Businessweek
(11/29), Reuters
(11/29), Financial Times (tiered subscription model)
(11/29), Nasdaq.com/Dow Jones Newswires
(11/29)
| Industry News and Trends | | |
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- EU court blocks request for ECB files on how Greece hid debt
The EU General Court, rejecting a request by Bloomberg News, is allowing the European Central Bank to keep private documents that show how Greece used derivatives to conceal debt. "The courts are bending the rules to legalize the policies of the European institutions and help stabilize the region," said Georg Erber of the German Institute for Economic Research. "It reveals implicitly that the EU was well-informed about what was going on and didn't take steps to avert the crisis." Bloomberg
(11/29)
- Chi-X mulls a move into derivatives trading in Australia
Chi-X reportedly is considering delving into the derivatives market in Australia in a move that would open a new competitive front for the exchange against the Australian Securities Exchange. Regulators are considering whether to introduce competition in clearing services, prompting the idea. The Australian (tiered subscription model)
(11/30)
| Regulatory Roundup | | |
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- Reps. Frank and Capuano introduce bill to merge SEC and CFTC
Reps. Barney Frank and Michael Capuano have introduced legislation that would combine the Commodity Futures Trading Commission with the Securities and Exchange Commission. Republican House members recently suggested such a move would help prevent regulatory lapses, but the proposal faces significant obstacles. "The existence of a separate SEC and CFTC is the single largest structural defect in our regulatory system. Unfortunately, this is deeply rooted in major cultural, economic and political factors in America," said Frank, who is retiring from Congress. Reuters
(11/29), The Hill/On The Money blog
(11/29), AdvisorOne
(11/29)
- Basel III under fire from lawmakers and bankers
A variety of financial industry executives, regulators and lawmakers are raising concerns about the Basel III rules and how they might affect the industry as well as the broader economy. Some lawmakers and state regulators are urging federal authorities to reconsider the proposed rules. "The one-size-fits-all approach to regulatory capital in the proposed rules does not take into consideration the diversity of our nation's financial system and the unique challenges faced by different-sized institutions," said Rep. Shelley Moore Capito, R-W.Va. Reuters
(11/29), The Wall Street Journal/Real Time Economics blog
(11/29)
- European Commission and Parliament are at odds over OTFs
The European Parliament and the European Commission disagree on the scope of organized trading facilities, which are part of the revised Markets in Financial Instruments Directive. The commission argues that OTFs should include equities traded on broker-crossing networks, but Parliament recommends that OTFs be used only for non-equity instruments. The Trade News (U.K.)
(11/29)
- Chinese official criticizes U.S. over FATCA
The U.S. has erred in taking a unilateral approach to thwart tax evaders with the Foreign Account Tax Compliance Act, People's Bank of China executive Liu Xiangmin says. Liu said FATCA doesn't respect the sovereignty of other nations. "It creates unreasonable costs for foreign financial institutions and directly contravenes many countries' privacy and data-protection laws," he said. Risk.net (subscription required)
(11/28), Reuters
(11/28)
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