Financial Regulatory Forum

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

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.

Major points in the paper are:
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U.S. House ‘concept paper’ has mandatory OTC derivatives clearing

WASHINGTON, July 29 (Reuters) – The leaders of the two U.S. House committees overseeing U.S. securities and futures markets agree that over-the-counter derivatives should move onto regulated exchanges and go through clearing in most cases, according to a “concept paper” that will guide bill-drafting.

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Expanded US financial regulation to benefit consultants

By Sweta Singh
NEW YORK, July 29 (Reuters) – Expanded regulation of the U.S. financial sector could prove a bonanza in 2010 for Navigant Consulting Inc and other firms that help companies handle investigations.
Navigant and rivals Huron Consulting Group Inc, FTI Consulting Inc and CRA International Inc provide experts, including lawyers, to help companies deal with regulatory probes. (more…)

NASDAQ backs ban on “flash” orders – U.S. Senate critic Schumer

Nasdaq backs ban on ‘flash’ trading -Schumer
By Rachelle Younglai and Jonathan Spicer
WASHINGTON/NEW YORK, July 28 (Reuters) – The Nasdaq Stock Market supports a ban on so-called “flashes,” order types that it and other stock-trading venues send to a select group of traders fractions of a second before revealing them publicly, Senator Charles Schumer said on Tuesday.

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U.S. SEC adopts permanent ban on “naked” short selling

WASHINGTON, July 27 (Reuters) – U.S. securities regulators made permanent a rule designed to clamp down on an abusive type of market activity known as naked short selling, the Securities and Exchange Commission said on Monday.

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US push on derivatives market reform comes clearer

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.

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Kuwait financier accusation, death highlight weak Gulf rules

HARMAN-BRAIKAN/By Rania El Gamal

KUWAIT, July 26 (Reuters) – The apparent suicide of a Kuwaiti broker, sued for fraud by U.S. regulators in a case linked to Kuwait’s ruling family and its top investment firm, shines an unwelcome light on the weak regulatory environment in the Gulf Arab state. Kuwaiti Hazem Khalid Al-Braikan, 37, who had been at the centre of a financial scandal that erupted last week, was found dead on Sunday, days after being sued by the U.S. Securities and Exchange Commission over suspicious stock trades.

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Kuwait financier cited in SEC lawsuit dead -sources

By Rania El-Gamal and Eman Goma
KUWAIT, July 26 (Reuters) – Kuwaiti financier Hazem Al-Braikan, who was sued by the U.S. securities regulator last week for allegedly profiting from “fraudulent” takeover reports, is dead, security sources said on Sunday.

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