Financial Regulatory Forum

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.

Efforts to ban “naked” CDSs could face limits

By Reuters Staff
July 28, 2009

Swiss Re was hit hard by losses in credit default swapsBy Karen Brettell
NEW YORK, July 28 (Reuters) – Efforts to limit speculation with credit default swaps may be ineffective as the large dealers that account for the vast majority of volumes in the market are likely to be exempt from any ban.

US push on derivatives market reform comes clearer

By Reuters Staff
July 28, 2009

By Kevin DrU.S. Representative Barney Frankawbaugh
WASHINGTON, July 27 (Reuters) – The shape of the U.S. government’s proposed crackdown on the $450-trillion over-the-counter derivatives market became clearer on Monday, with Congress poised to move forward this week on other aspects of a sweeping overhaul of U.S. financial regulation.

U.S. SEC approves two firms to clear credit-default swaps

By Reuters Staff
July 24, 2009

WASHINGTON, July 23 (Reuters) – ICE Clear Europe and Eurex Clearing AG have been given permission to clear credit default swaps, a type of derivative that exacerbated the global financial crisis, the Securities and Exchange Commission said on Thursday. (more…)

U.S. finance reform bill may ban ‘naked’ credit default swaps

By Reuters Staff
July 21, 2009

U.S. Rep. Collin Peterson WASHINGTON, July 21 (Reuters) – An omnibus financial reform bill in the U.S. House of Representatives would require that over-the-counter derivatives go through clearinghouses and probably ban “naked” credit default swaps, the chairman of the House Agriculture Committee said on Tuesday. (more…)

U.S. Justice Department investigates credit default swaps

July 14, 2009

NEW YORK, July 14 (Reuters) – Markit Ltd, a dealer-owned provider of prices in the credit default swap market, said on Tuesday the U.S. Justice Department is investigating the $26.5 trillion market.

CDS players propose changes in U.S., Europe clearing

By Reuters Staff
July 13, 2009

NEW YORK, July 13 (Reuters) – Large dealers and fund managers in the $26.5 trillion credit default swap market have proposed regulatory changes in the U.S. and Europe to protect client funds backing credit default swaps in central clearinghouses, the New York Federal Reserve said on Monday. (more…)