Conflicting interpretations of European digital assets legislation are hindering the development of euro-denominated stablecoins, according to Don Wilson, chief executive of DRW Holdings. As a result, Wilson said European capital will continue flowing into US dollar stablecoins, which typically invest in US Treasuries, and away from European government bonds. “European [regulators] have expressed some concerns about […]
Emir rule delay leaves Simm paperwork gathering dust – FX Markets End of drawer navigation content Skip to main content Mid-year refresh triggers Emir 3.0 authorisation process despite unfinished regulatory standards 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
Tariff volatility pushes banks to tighten close-outs – FX Markets End of drawer navigation content Skip to main content Lawyers say dealers are looking to update playbooks for terminating derivatives trades 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
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
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
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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
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
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
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,
