Financial Regulatory Forum

EU unveils plan to clamp down on derivatives trading

A woman walks past a branch of French savings bank Caisse d'Epargne in Bouvigal, near Paris, October 17, 2008. Caisse d'Epargne merged with Banque Populaire to become the country's second-largest retail bank, said last year it had made a 600-million-euro ($808.1 million) trading loss on share derivatives. (File Photo) REUTERS/Benoit Tessier (FRANCE) By John O’Donnell
BRUSSELS, Oct 20 (Reuters) – The European Commission unveiled plans on Tuesday to drive more trading in derivatives onto exchanges and under the gaze of regulators, publishing a raft of proposed new rules.

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Financial reforms gain traction in U.S. Congress

Committee Chairman Edolphus Towns (D-NY) (C), ranking member Rep. Darrell Issa (R-CA) (L) and Rep. Dennis Kucinich (D-OH) (R) talk to reporters after testimony by U.S. Federal Reserve Chairman Ben Bernanke about his role in Bank of America's acquisition of Merrill Lynch, at a hearing of the House Oversight and Government Reform Committee on Capitol Hill in Washington, June 25, 2009.    REUTERS/Jonathan Ernst    (UNITED STATES POLITICS BUSINESS) By Kevin Drawbaugh
WASHINGTON, Oct 14 (Reuters) – A senior U.S. lawmaker lashed out anew over the rich pay packages awarded to executives of bailed-out banks on Wednesday, as Congress took steps to move ahead on financial regulatory reform.

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New U.S. derivatives bill addresses end user concerns

U.S. Rep. Collin Peterson (D-MN), chairman of the House Agriculture Committee, answers reporters' questions on his views of the relationship between the U.S. Federal Reserve and Wall Street, at the Reuters Financial Regulation Summit  in Washington, April 27, 2009.  REUTERS/Mike Theiler  (UNITED STATES POLITICS BUSINESS) By Kevin Drawbaugh and Christopher Doering
WASHINGTON, Oct 9 (Reuters) – The chairman of the U.S. House of Representatives Agriculture Committee on Friday unveiled a draft bill on regulation of over-the-counter derivatives that differs in some key respects from bills drawn up elsewhere in the House and by the Obama administration.

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COLUMN – OTC derivatives modernisation deserves support: John Kemp

U.S. Representative Barney Frank (D-MA), Chairman of the House Financial Services Committee, listens to a reporter's question during the Reuters Global Financial Regulation Summit in Washington, April 28, 2009.  REUTERS/Jonathan Ernst (UNITED STATES POLITICS BUSINESS HEADSHOT)  — John Kemp is a Reuters columnist. The views expressed are his own –

By John Kemp
LONDON, Oct 9 (Reuters) – Prominent banks and some business groups have warned policymakers their efforts to force standardised over-the-counter (OTC) derivatives transactions onto futures exchanges and into the clearing system will drive trading offshore and raise the cost of genuine risk-hedging for non-financial firms.
But scaremongering by the finance industry’s well-paid lobbyists about “unintended consequences” should not deter legislators from pressing ahead with a worthwhile reform.

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Thomson restructuring auction puts credit derivatives in spotlight

A man walks past a billboard promoting French consumer electronics maker Thomson in Beijing November 4, 2003. By Jane Merriman
LONDON, Oct 7 (Reuters) – The opaque world of credit derivatives is in the spotlight ahead of an auction to settle contracts on a debt restructuring at French electronics company Thomson that could expose flaws in the process.

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U.S. firms that hedge risk win reprieve on derivatives rules

By Charles Abbott and Rachelle Younglai
WASHINGTON, Oct 7 (Reuters) – Congress’ chief architect on financial regulation said on Wednesday companies that use derivatives to hedge their risk would not be forced to comply with all the new rules for the $450 trillion private swaps market.
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COLUMN-Beware the bull market in derivatives: Matthew Goldstein

COLUMN-Beware the bull market in derivatives: Matthew Goldstein
Matthew Goldstein– Matthew Goldstein is a Reuters columnist. The views expressed are his own – 
   By Matthew Goldstein
   NEW YORK, Sept 29 (Reuters) – The Dow is near 10,000 again. The business press is full of stories about the resurgence in mergers, IPOs and even so-called blank check companies.
   There’s one statistic, however, that should give investors pause: the growth in the total dollar value of derivative contracts at the top too-big-to-fail banks in the United States. (more…)

US SEC warns swaps may evade White House reform

USA/ By Charles Abbott and Rachelle Younglai
WASHINGTON, Sept 22 (Reuters) – The U.S. securities regulator warned Congress on Tuesday that parts of the $450 trillion private swaps market could still fall through regulatory cracks under the Obama administration’s financial reform plan.

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INTERVIEW – CME proposes energy position limits

Craig Donohue, the chief executive of CME Group, speaks during The Globalization of Capitol Markets: The Rise of New Financial Centers panel at the 2008 Milken Institute Global Conference in Beverly Hills, California April 28, 2008. REUTERS/Phil McCarten (UNITED STATES) NEW YORK, Sept 16 (Reuters) – CME Group, the giant Chicago-based operator of derivatives exchanges, would impose new position limits on NYMEX energy contracts in response to a push by U.S. regulators for renewed scrutiny in energy trading, CEO Craig Donohue said in an interview Wednesday.
CME would apply the limits, laid out in a CME White Paper released Wednesday, as long as regulators agree to enforce limits in venues where commodities are traded around the world, and extend them to include over-the-counter commodities swap contracts as well, Donohue said.

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Clearing derivatives not enough to cut risks

MARKETS-JAPAN-STOCKS    By Huw Jones
   LONDON, Sept 13 (Reuters) – Central clearing of privately traded derivatives contracts won’t be enough to make the $600 trillion sector safe, while clearing of some bespoke trades may not be desirable, the Bank of International Settlements said. (more…)

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