FIA SmartBrief

Reading this on a mobile device? Try our optimized mobile version here: http://r.smartbrief.com/resp/eeivCfbwoceXrWpluRei

January 4, 2013

Forward

Advertise

Top Stories

OCC signals banks will have more time to wall off swaps trading
U.S. companies that engage in swaps trading and receive federal deposit insurance are required under the Dodd-Frank Act to spin off some swaps trading into a separate branch. However, the Office of the Comptroller of the Currency says that if banks ask for a transition period, the request will be "considered favorably." Reuters (1/3), Bloomberg (1/3)

Swaps-to-futures switch pushes ICE volume to record
IntercontinentalExchange had record volume of 847 million contracts for 2012, up 10% from the year before, thanks to the conversion of energy swaps to futures contracts. The ICE agreed in December to acquire NYSE Euronext in a transaction valued at $7.9 billion. Bloomberg (1/3), The Wall Street Journal/Dow Jones Newswires (1/3)

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.

Regulatory Roundup

Traders say real-time swaps disclosure needs improvement
In theory, this week marks the beginning of mandatory real-time disclosure of certain types of swap trades thanks to new Commodity Futures Trading Commission rules. However, the CFTC is still allowing delays of up to several hours until it finalizes the regulations. Traders say that makes the data roughly on par with that already available through various subscription services. The Wall Street Journal (1/3)

CFTC fines Japanese bank over shortfall in clients' FX accounts
The Commodity Futures Trading Commission has fined Mizuho Financial Group of Japan for having a shortfall of funds in clients' foreign-exchange trading accounts in October. Mizuho paid the fine without admitting to or denying the charges. The Wall Street Journal (1/3)

Commentary: Regulatory course is likely to remain the same
Regulatory personnel may change this year, but the direction of rules governing the financial sector will likely remain on course, Annette Nazareth and Gabriel Rosenberg of Davis Polk & Wardwell write. Financial Times (tiered subscription model) (1/3)

Other News

Fate of Dodd-Frank might be decided this year, analysts say
The Washington Post (1/2)

Industry Developments

Brokers' revenue is at stake as U.S. swaps rules take effect
U.S. swaps rules are expected to drive some business away from brokers and to exchanges, shifting hundreds of millions of dollars of revenue. "It is going to be tough for the brokers. The exchanges are huge with deep pockets and they are not the types of companies you'd want invading your space," says Simmy Grewal of Aite Group. Reuters (1/3)

New year brings new transparency for derivatives
This year brings a pivotal moment in the derivatives business, with real-time trading data coming into full view for the first time, Ben Protess writes. Banks have resisted much of the regulatory push, but are complying as regulators gain prominence in a market they previously had little authority over. The New York Times (tiered subscription model)/DealBook blog (1/3)

CME says December trading volume was down 13% from November
Trading volume for CME Group was down 13% in December from a month earlier, with daily volume averaging 9.6 million contracts. Still, volume was up 1% from the year before. About 88% of December's approximately 192 million contracts were traded electronically, CME said. The Wall Street Journal/Dow Jones Newswires (1/3)

Other News

Japanese exchange has difficult first day
Financial Times (tiered subscription model) (1/4)

Credit Suisse's equity-derivatives chief in S. Korea reportedly left firm last month
Risk.net (subscription required) (1/4)

Electronic Trading News

Lenterman: HFT article failed to mention economies of scale
Remco Lenterman, chairman of the FIA European Principal Traders Association, takes issue with a Financial Times article for failing to mention how high-frequency trading has brought economies of scale. Financial Times (tiered subscription model) (1/3)

Commodities and Managed Futures

Analysis: Narrower focus for commodity ETFs widens opportunities
Exchange-traded funds in commodities are narrowing their focus, presenting opportunities as well as amplified risks for investors, Liam Pleven writes. However, experts say they can be used wisely in a portfolio, in some cases hedging bets in other sectors. The Wall Street Journal (1/3)

SmartQuote

Beware the fury of a patient man."

--John Dryden,
British poet, critic and playwright

Subscriber Tools

Print friendly format | Web version | Search past news | Archive | Privacy policy

Advertise

Account Executive: Abiy Bekele (919) 931-5915

Read more at SmartBrief.com
A powerful website for SmartBrief readers including:
Industry Home Readers' Choice Search Archive Grab our News Widget Get this RSS Feed Publish your Press Release Download a SmartBrief Mobile app today


	Recent FIA SmartBrief Issues: Thursday, January 03, 2013 Wednesday, January 02, 2013 Monday, December 31, 2012 Friday, December 28, 2012 Thursday, December 27, 2012			Lead Editor: Bridget Lux Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004