China has moved closer to developing its domestic derivatives industry through a memorandum of understanding signed between the International Swaps and Derivatives Association (Isda) and the China Futures Association (CFA). Signed by Scott O’Malia, CEO of Isda, and Zhichao Liu, chairman of the CFA, the memorandum is intended to facilitate sharing of ideas that will […]
The proposed European Financial Transaction Tax (FTT) will make central clearing of over-the-counter derivatives prohibitively expensive, according to TJ Lim, global head of markets for Italy’s UniCredit.
Tullett Prebon’s chief executive Terry Smith wrote a letter to the International Swaps and Derivatives Association (ISDA) back in 2010 to question the rate setting process, but was ignored.
A tax proposal released by the US House of Representatives would require investors to determine the fair market value of their derivatives holdings once a year and pay tax on any gains at ordinary income rates.
The International Swaps and Derivatives Association is playing a more active role in the debate on the impact of speculation on global commodity prices, setting up a new website designed to dispel what it sees as myths about the impact of investor activity.
Derivatives market participants are trying to solve a problem that could prevent the clearing of credit default swaps (CDSs) on the Markit iTraxx Europe index – one of two index families the Commodity Futures Trading Commission (CFTC) plans to include in its initial clearing mandate, which is expected to take effect during the first quarter of 2013.
ICAP, the interdealer brokers, and Rapid Ratings, a rater or alternatives, are jointly launching a rating service covering the credit derivatives market.
Dealers have warned that buy-side firms should not leave it until the last minute to start negotiating over-the-counter clearing agreements, because of the risk they may have to adopt standard contracts with no flexibility to make amendments.
Incoming transparency rules could shrink over-the-counter derivatives trade sizes, as market participants try to avoid revealing their positions, according to an industry panel at the International Swaps and Derivatives Association’s European conference.
The publication of a standard legal contract for over-the-counter derivatives clearing in Europe will be delayed by up to three months, dealers say.
The International Swaps and Derivatives Association has proposed an alternative approach to trading book capital requirements, and urged regulators not to disincentivise banks from improving their internal models, in its response to the Basel Committee on Banking Supervision’s review of existing trading book capital rules.
MSCI, the data and index provider, has published a paper studying derivatives clearing as regulation introduces more centrally cleared contracts.