Tag: Regulation

  • Emir rule delay leaves Simm paperwork gathering dust

    Emir rule delay leaves Simm paperwork gathering dust


















































    Emir rule delay leaves Simm paperwork gathering dust – FX Markets






    Mid-year refresh triggers Emir 3.0 authorisation process despite unfinished regulatory standards


    Two piles of dusty beige cardboard files containing paperwork sitting on a shelf with dust motes floating in a shaft of light

    The first mid-year recalibration of the standard initial margin model under a new semi-annual regime will trigger a requirement for European firms to submit model validation applications to their regulators – but the rules governing the validation process itself have yet to be written. 

    Known as version 2.7+2412, the International Swaps and Derivatives Association’s latest iteration of Simm is the first refresh of risk weights under a new approach aimed at improving Simm’s responsiveness by

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  • Tariff volatility pushes banks to tighten close-outs

    Tariff volatility pushes banks to tighten close-outs
















































    Tariff volatility pushes banks to tighten close-outs – FX Markets






    Lawyers say dealers are looking to update playbooks for terminating derivatives trades


    Isda-updates-GettyImages-1385721979

    Banks have been looking to update procedures for dealing with over-the-counter derivatives close-outs and margin calls following the recent bout of US tariff-driven market turbulence, according to lawyers.

    The market volatility that followed US President Donald Trump’s back-and-forth tariff announcements has had financial institutions contacting lawyers to tighten up their internal playbooks for dealing with collateral calls and close-outs, where a trade is terminated early if a counterparty

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  • EU firms fear dollar liquidity becoming tariff bargaining chip

    EU firms fear dollar liquidity becoming tariff bargaining chip


    European financial institutions are concerned that any renewed escalation of trade tensions with the US could spill over into actions that would limit their ability to source dollar funding.

    A chief risk officer (CRO) at a European wealth manager says this scenario remains “extreme”, but not impossible.

    “One of the scenarios I have been starting to play with is if all US dollars have to be held in US banks,” says the CRO. “You have to understand your third-party risk dependencies on large banks.”

    U

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  • Indonesian CCP seeks thumbs-up from US, UK and Japan

    Indonesian CCP seeks thumbs-up from US, UK and Japan


    Indonesia’s new central counterparty (CCP) for foreign exchange derivatives is to seek recognition from regulators in three overseas jurisdictions this year, amid a flurry of membership enquiries from foreign banks.

    “[Foreign banks] have shown their enthusiasm [and] willingness to join,” said Abdul Hadie, head of strategic planning and enterprise risk management at Indonesia Clearing and Guarantee Corporation (IDClear).

    “The major concern is when we will apply for recognition in their home

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  • FX Spot+ Connecting the OTC spot FX market with FX futures

    FX Spot+ Connecting the OTC spot FX market with FX futures




























    FX Spot+ Connecting the OTC spot FX market with FX futures – FX Markets




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  • Consumers elected Trump to fix prices — his policies could do the opposit…

    Consumers elected Trump to fix prices — his policies could do the opposit…


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  • Social Security Administration has been on ‘autopilot,’ costing more than…

    Social Security Administration has been on ‘autopilot,’ costing more than…




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  • FX defs look to calculation agents for close-out rates

    FX defs look to calculation agents for close-out rates


    Calculation agents will play a bigger role under the International Swaps and Derivatives Association’s new foreign exchange definitions, while the definition of “impossibility” in disruption events will also be updated.

    Isda is updating its rule book for trading FX derivatives, after the Russian invasion of Ukraine in 2022 exposed flaws around the management of disruption events and disrupted price sources.

    Deepak Sitlani, a partner in the derivatives and structured products group at law firm

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  • Iosco pre-hedging review: more RFQs than answers

    Iosco pre-hedging review: more RFQs than answers


    Consultation papers are like tea leaves or runes: observers study them for clues to future actions or events.

    Such is the case with Iosco’s latest consultation paper on the controversial practice of pre-hedging. The document, released last November, has raised niggling concerns among market participants that the global standard-setter may be weighing tighter rules on pre-hedging, particularly for trades conducted using request-for-quotes, or RFQs.

    Dealers have warned that such restrictions could

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  • Isda to finalise drafting updated FX definitions this year

    Isda to finalise drafting updated FX definitions this year


    A new framework for handling disruption events is at the core of work being carried out by the International Swaps and Derivatives Association to update its foreign exchange and currency option definitions, which is expected to be finalised this year.

    Much of the focus on drafting the new definitions, which have not been updated since their inception in 1998, concerns updating the classification of disruption events and fallbacks for deliverable FX transactions, such as spot, FX forwards and

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  • Iosco mimics industry codes to tackle pre-hedging dilemma

    Iosco mimics industry codes to tackle pre-hedging dilemma


    Draft recommendations proposed by international regulators to address controversy over the practice of dealers pre-hedging client orders have largely copied guidance already set out in industry codes.

    That’s good news for advocates of pre-hedging who may have feared stricter guidance, but has left its critics wanting more.

    “When it comes to the competitive request-for-quote scenario, we don’t feel that they’ve gone far enough with it,” says a regulatory expert at a non-bank market-maker, who

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