Derivatives
US Treasury market preps for reporting showdown
Sifma expected to attack transparency plans; prop traders brand objections “crazy”
Some EU countries unable to punish Emir breaches
Firms in Poland and Ireland cannot be fined for reporting breaches, while Belgium, Portugal and Spain have only recently acquired the ability to impose sanctions
India reverses curbs on USD/INR trading
India's financial regulator has rolled back emergency measures it introduced last year as USD/INR rate stabilises
OTC derivatives turnover driven by 'non-dealer' contracts, says BIS
Article in latest BIS quarterly review notes share of inter-dealer trades shrunk to 35% in 2013; trading remains concentrated in major financial centres despite 'rapid' growth in EM currencies
CLS raises £160 million capital from shareholders
Hefty capital raise completed last week to enable CLS to meet demanding new capital requirements and support future growth
BoE's Carney: liquidity support for CCPs is a 'last-resort option'
Bank of England governor insists clearing houses must have enough liquidity to cope with the default of two big member firms
CCPs face $161 billion liquidity shortfall to clear FX options, GFXD finds
Results of an industry study reveal the scale of the liquidity burden that would fall on CCPs clearing physically delivered FX options – but a net settlement mechanism could reduce the number by 73%
OTC derivatives reform contains ‘real world challenges' says Fed governor
Jerome Powell says worldwide reform efforts will turn OTC derivatives market infrastructure into a ‘pillar of strength in the next crisis' if implementation challenges can be overcome
Bloomberg launches US dollar benchmark
New US dollar index will represent 10 currencies, including Chinese renminbi and the Australian dollar
RBI and industry disagree over interest rate futures launch
Secret consultation on introducing interest rate futures in India finds disagreement between industry and regulators over the nature of the underlying bonds
Cœuré warns of threat of regulatory arbitrage on OTC derivatives
Benoît Cœuré says much progress has been made since Pittsburgh in 2009, but argues there is a risk of business moving to jurisdictions which lag behind in implementing the reform agenda
BIS: Forex OTC markets hold steady, despite regulatory uncertainty
Semi-annual BIS survey reveals a rise in forex OTC derivatives transactions in the second half of last year
Recommendation due on UK RPI calculation consultation
The UK's Office for National Statistics will make its recommendation tomorrow morning over whether and how to change how it calculates the Retail Prices Index
New CRD IV draft exempts sovereign trades from CVA capital charge
The latest council draft adds a CVA capital charge exemption for sovereign derivatives transactions – potentially removing one of the big unintended consequences of CRD IV, participants say
ECB threatens to stop trading swaps with US counterparties
ECB invokes US legal amendment providing it with broad immunities and says it might stop using US dealers unless granted exemptions from Dodd-Frank Act rules
Central banks accused of collateral hypocrisy
Despite the funding risk it creates, central banks still refuse to sign two-way collateral agreements
Dealers face funding time-bomb from one-way CSAs
Five banks disclose $30 billion obligation from one-way collateral agreements - and dealers warn costs could soar as interest rates rise
Future of Supervisors' letter process unclear in wake of Dodd-Frank
Swap clearing legislation threatens to render OTC market commitments redundant
ECB opinion on derivatives reform spurs debate on CCP liquidity resilience
French authorities welcome ECB's call for the resilience of central bank money to be recognised in EU derivatives legislation.
Basel III won’t be a problem if implemented correctly, says Bank of England
Latest Financial Stability Report stresses importance of long transition to new rules, and concerns over central counterparty clearing
BIS survey shows OTC market levelling off
Notional volume and credit exposures are growing more slowly, latest market data shows