| Daily coverage for the global derivatives industry |  |
- Basel III could be delayed in U.S. by impact study
A possible Senate bill would require a quantitative-impact study before the U.S. implements rules by the Basel Committee on Banking Supervision. Although an actual congressional vote could be difficult to achieve, analysts say legislative pressure on regulators might be enough to dissuade them from Basel III adoption indefinitely. Risk.net (subscription required)
(2/8)     
 | Margin Savings up to 90% for Cleared OTC IRS vs. Futures
90% is no small number—especially when it comes to margin savings. Market participants have been actively utilizing portfolio margining of Cleared OTC IRS and Eurodollar and Treasury futures, and total risk reductions now account for over $1 billion in initial margin savings—figures that remain unparalleled in the industry. Click here to learn more. |
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| Industry News and Trends |  |  |
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- Trading in emerging-market CDS fell in Q4, survey finds
In the fourth quarter, the volume of emerging-market credit default swaps contracts dropped 39% compared with Q4 of 2011, according to a survey by the Emerging Markets Trade Association. The decline was attributed to concerns about the U.S. "fiscal cliff," downgrades of sovereign-debt ratings and tougher risk limits for banks. "The sharp drop of CDS activity in the fourth quarter of 2012 likely reflected the impact of greater market volatility during the period," said David Spegel of ING Wholesale Banking. Reuters
(2/8)
| Regulatory Roundup | | |
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- EBSA: Swaps trading by pension funds won't trigger fiduciary duty
An Employee Benefits Security Administration opinion may ease the concerns of pension-plan sponsors whose brokers were hesitant to execute swaps amid worries about being held to a fiduciary standard. The EBSA opinion says "it does not appear that Congress contemplated that [clearing members] would act as ERISA fiduciaries with respect to plan customers. The swaps regulations ... similarly do not envision" such a requirement. Pensions & Investments (free registration)
(2/8)
- EU looks to force banks to remain benchmark-rate setters
The European Commission is working on legislation that would force banks to remain on panels that set the Euro Interbank Offered Rate and other benchmark interest rates. "The commission will propose further legislation on benchmarks in the second quarter of 2013 in order to further clarify the framework under which benchmarks should operate," Internal Market Commissioner Michel Barnier said. "Any banks considering withdrawing from the contributing panels should therefore take into account that they may be required to rejoin the panels." Meanwhile, the European Central Bank is encouraging banks to remain on such panels, saying they play a key role in monetary policy. Reuters
(2/8), Reuters
(2/8), Bloomberg
(2/8)
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