Financial Regulatory Forum

Clearinghouses’ default “waterfall” offers no panacea against their potential failure

By Guest Contributor
April 10, 2014

By Bora Yagiz, Compliance Complete

NEW YORK, Apr. 10, 2014 (Thomson Reuters Accelus) - The push of derivative contracts into central counterparties (CCP) – also known as clearinghouses — has been underway for more than five years, yet it remains unclear how these entities would fare under stressed market conditions in the U.S. (more…)

Regulators globally seek to curb supercomputer trading glitches

By Guest Contributor
August 31, 2012

By Christopher Elias

LONDON, Aug. 31, (Business Law Currents) - A series of stock market glitches has prompted regulators around the world to introduce new regulations to limit the impact of computer malfunctions on trading. Shielding markets from another Knight Capital disaster, the new rules seek to defend market participants from malicious machines and risky robots. (more…)

U.S. market regulators eye clearinghouse governance – CFTC’s Gensler

By Reuters Staff
March 1, 2010

By Christopher Doering

WASHINGTON, March 1 (Reuters) – Congress should give U.S. securities and futures regulators the authority to ensure clearinghouses are protected against conflicts of interest, the chairman of the Commodity Futures Trading Commission said on Monday.

US lawmakers urged to drop clearinghouse ownership cap

By Reuters Staff
November 20, 2009

U.S. Representative Barney Frank (D-MA) holds a news conference on issues before the House Financial Services Committee on Capitol Hill in Washington, November 3, 2009.  REUTERS/Jonathan Ernst   By Jonathan Spicer
NEW YORK, Nov 20 (Reuters) – NYSE Euronext, LCH.Clearnet, BATS Global Markets and other firms partnered with banks have urged two U.S. legislators to drop a proposed “rigid” cap on dealer ownership of clearinghouses, according to a letter sent this week.

U.S. Senate agriculture panel head plans own US swaps reform bill

By Reuters Staff
November 18, 2009

Senator Blanche Lincoln (D-AR) (C) speaks about the 2007 budget in a news conference at the Capitol in Washington, February 9, 2006. Also pictured are Senate Majority Leader Harry Reid (D-NV) (L) and Senator Kent Conrad (D-ND).   REUTERS/Jonathan Ernst WASHINGTON, Nov 18 (Reuters) – The U.S. Senate Agriculture Committee chairman said on Wednesday she intends to draft legislation “that will bring much-needed transparency and accountability to the over-the-counter derivatives market.”

OTC derivative end-users exempted in draft US bill

By Reuters Staff
October 5, 2009

REGULATION-SUMMIT/

WASHINGTON, Oct 5 (Reuters) – A wide swath of end-users of over-the-counter derivatives contracts would be exempted from new rules requiring centralized clearing under draft legislation circulating in the U.S. Congress on Monday.

US, Britain to work on clearinghouse oversight

By Reuters Staff
September 15, 2009

Gary Gensler, chairman of the Commodity Futures Trading Commission, testifies before the House Financial services committee on Capitol Hill in Washington July 2009, REUTERS/Yuri Gripas WASHINGTON, Sept 15 (Reuters) – The U.S. Commodity Futures Trading Commission and the United Kingdom’s Financial Services Authority said they will cooperate on the cross-border oversight of clearinghouses.

U.S. bill would restrict OTC derivatives holdings

July 30, 2009

USA/ By Charles Abbott and Rachelle Younglai
WASHINGTON, July 30 (Reuters) – U.S. financial regulators would gain the power to restrict holdings of over-the-counter derivatives under legislation to be crafted in the coming months, the chairmen of two House of Representatives committees said on Thursday.

Two US House chairmen back mandatory OTC clearing in derivatives reform goals

By Reuters Staff
July 30, 2009

WASHINGTON, July 29 (Reuters) – Over-the-counter derivatives should go through central clearing and trade on regulated exchanges as much as possible, according to a paper prepared for release by the chairmen of the U.S. House of Representatives Financial Services and Agriculture committees. The paper, obtained by Reuters, is to be unveiled Thursday and is intended as a guide for legislation to be written after Congress returns from its August recess.

INTERVIEW – LCH.Clearnet wary of clearing some CDSs – chief executive

July 29, 2009

By Karen Brettell and Jonathan Spicer
NEW YORK, July 29 (Reuters) – LCH.Clearnet plans to offer clearing services for credit default swaps based on European indexes, but is wary about clearing contracts written on the debt of single issuers, Chief Executive Roger Liddell said in an interview on Wednesday.