Financial Regulatory Forum

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.

In China, banks chafe at derivatives drive

By Reuters Staff
July 28, 2009

By Eadie Chen and Jonathan Leff
BEIJING/SINGAPORE, July 27 (Reuters) – While Washington pursues a high-profile overhaul of its derivatives markets, a more modest but equally important crackdown is underway in China. (more…)

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.

Democrats vow fight with banks over U.S. consumer protections

By Reuters Staff
July 22, 2009

U.S. Representative Barney Frank (R) By Kevin Drawbaugh
WASHINGTON, July 22 (Reuters) – Congressional Democrats pledged on Wednesday to engage the banking industry in a summer-long debate over the Obama administration’s call for the creation of a U.S. Consumer Financial Protection Agency. (more…)

U.S. agencies unveil crackdown on OTC derivatives

By Reuters Staff
July 22, 2009

By Kevin Drawbaugh and Christopher Doering h
WASHINGTON, July 22 (Reuters) – Over-the-counter derivatives markets, a “dark corner” of the U.S. financial system, would face much greater public and government scrutiny under proposals detailed by regulators on Wednesday.

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.

ANALYSIS-U.S. banks prepare to battle over OTC derivatives

By Reuters Staff
July 14, 2009

U.S. Representative Barney Frank By Steve Eder and Rachelle Younglai
NEW YORK/WASHINGTON, July 13 (Reuters) – The banking industry is gearing up for a battle over the lucrative derivatives market, but will have to fight hard to head off a crackdown by regulators.
Calls to regulate the $450 trillion private market — long seen as the Wild West of the financial services sector — have been building for months. Policymakers were caught off guard when a type of derivative — credit default swaps — nearly toppled insurer American International Group Inc and global financial markets. (more…)

US’s Geithner seeks clampdown on derivatives dealers

By Reuters Staff
July 10, 2009

U.S. Treasury Secretary Timothy Geithner By Rachelle Younglai
WASHINGTON, July 10 (Reuters) – U.S. Treasury Secretary Timothy Geithner on Friday proposed clamping down on dealers in freewheeling markets for little-understood derivatives that helped create a crisis in U.S. and world financial markets.  In testimony at a joint hearing by two congressional panels that will play a role in writing legislation on derivatives, Geithner set out proposals that would make big dealers like JPMorgan Chase and Goldman Sachs subject to much stronger supervision than was the case in the past.

U.S. companies lobby Congress on derivatives-WSJ

July 10, 2009

    July 10 (Reuters) – At least 42 nonfinancial companies and trade associations are lobbying the U.S. Congress to push back on proposals that regulate the over-the-counter derivatives market, the Wall Street Journal said on Friday.
(more…)