"May 29 The European Union may need to be less rigid in its approach to dealing with financial rules from outside the bloc to avoid disputes with other countries, the EU's top markets regulator said on Friday."
"ASIC today proposed draft rules to implement mandatory central clearing requirements (clearing requirements) for certain over-the-counter (OTC) derivatives. The proposals are the next stage in Australia meeting its Group of Twenty (G20) commitments to reform OTC derivatives markets following the global financial crisis (GFC)."
"Europe's long-awaited swaps clearing regime could take effect from April 2016, according to Jonathan Hill, the European Commission's (EC) commissioner for financial stability, financial services and capital markets union, who was speaking this morning (May 29) at a public hearing in Brussels."
"Facing a shortfall of more than $50 billion in his state’s pensions, and with no simple solution at hand, Gov. Tom Wolf of Pennsylvania is proposing to issue $3 billion in bonds, despite the role that such bonds have already played in the fiscal woes of other places."
"New longevity assumptions that increase the life expectancies for pension plan cohort members, which ultimately increase pension plan accounting liabilities, will not affect the cost of insurance and reinsurance capacity for longevity risk transfer, according to Prudential."
"We explore one-period structural modelling approaches for covered bonds and senior unsecured debt losses with one and two asset value variables respectively. Obviously, two-assets models with separate values of the cover pool and the issuer's remaining portfolio allow for more realistic modelling. However, we demonstrate that exact calibration of such models may be impossible. Therefore, we propose a one-asset model in which the riskiness of the cover pool is reflected by a risk-based adjustment of the encumbrance ratio of the issuer's assets."
"The financial crisis exposed how vulnerable defined contribution pension plans are to the stock market, but many investors are contributing to their own retirement demise."
"The derivatives trades of UK building societies are being buffeted by tougher regulations that pose a challenge to their business of providing mortgages to home buyers. The cost of entering into an interest rate swap for building societies has been relatively small but that is set to change as these derivatives become centrally cleared, dramatically increasing costs for users."
A clutch of technology firms and back-office specialists are quietly making progress on a new margining utility for the swaps market – a high-stakes project that has already seen off previously undisclosed plans by the world's biggest dealers to create their own margin hub.
As more companies adopt LEIs, their benefits are growing more apparent. Executives from two top-tier banks discuss their value in reducing operational risk and advantages for KYC and AML processes
Collateralized loan obligations (CLOs) are coming back into vogue as investors seek out new instruments to deliver risk. The industry that services them is catching up, as well
The smooth implementation of the third phase of Australian and Singaporean trade reporting means firms are now switching their attention to meeting data quality standards – with market participants saying that failure to do so could undermine the whole purpose of monitoring over-the-counter derivatives trading.
"The US Commodity Futures Trading Commission (CFTC) admits it will miss a self-imposed deadline for a study to help it determine where to set the de minimis threshold for swap dealer registration – an issue that is being watched closely by energy companies, which fear a lower threshold could force them to register and face tougher rules."
"Following the expiration of no-action relief by the U.S. Commodity Futures Trading Commission on May 15, packaged mortgage backed securities and U.S. Dollar swap transactions must be traded on a swap execution facility or designated contract market."
"There is no doubt that the major Financials operating the CLOBs are gaining some traction, the big IDB’s and the new startup platforms have eventually woken to the prospect that their protective strategies have caused their market dominance to be eroded and their way back will be through the Order Books."
"Arthur Hayes, chief executive of Bitcoin Mercantile Exchange (BitMex) doesn't have an office, in fact his company doesn't even have a bank account, yet BitMex is one of a handful of bitcoin derivatives exchanges globally and the first major one in Asia outside of China that are betting on the future of the cryptocurrency."
"Homeowners should be made to realize that when they let their banks foreclose on earthquake-devastated homes not only do they lose all their equity, but also put their credit rating at risk. Depending on lenders' reactions, it may be difficult or impossible to borrow money for another home for several years. For many of us, our homes represent our largest financial asset. We should think twice before considering walking away without earthquake insurance."
"Today the Securities and Exchange Commission fined Deutsche Bank $55 million for accounting misstatements relating to some crisis-era credit derivatives, and reading the SEC order makes me feel like a peasant in the Dark Ages discovering a classical Greek statue in a pile of rubble. They had Art, back then, in 2005 or whatever. Their credit derivatives had a beauty, a symmetry, a purity of line and a depth of feeling that we're unlikely to see again in our lifetimes."
"In current form, the U.S. Treasury Internal Revenue Service’s proposed rules for Passive Foreign Investment Companies (PFICs) could impact a number of alternative risk, reinsurance and ILS structures and activities."