Regulation
Two sides to every argument
May in perspective: participants hope the US Treasury will hold by its proposed exemption, despite several calls for further independent analysis of the FX market
Industry welcomes European Parliament recognition of FX
Amendments in Econ version of regulation stress the importance of settlement risk and existing market infrastructure
CCPs should become direct members of CLS, poll suggests
72% of poll respondents call for CCPs to join CLS to ensure settlement risk continues to be effectively managed when mandatory clearing is introduced
CFTC rulemaking narrows field in repository race
CLS decides not to pitch to become FX repository provider after CFTC rulemaking demands extra granularity and timeliness in data reporting
Against the Treasury’s proposed exemption
Systemically significant foreign exchange markets need transparency and regulation, argue Dennis Kelleher and David Frenk
In favour of the Treasury’s proposed exemption
Darrell Duffie's opposition to the US Treasury's paper misses crucial points, argues Justyn Trenner
CME plans to clear all FX products, despite probable exemption
Swaps and forwards will be part of the exchange group's FX clearing initiative as banks will need to clear them if used to hedge an option
Duffie paper sparks debate over credit risk in FX swaps and forwards
Market participants respond to calls from academic Darrell Duffie for more analysis before finalising exemption of FX swaps and forwards from clearing requirements
State Street admits to SEC pricing probe
SEC is investigating State Street over its FX pricing as part of ongoing regulatory probe into overcharging by major custodians
European Commission ‘unhappy’ with Dodd-Frank extraterritoriality
EC official voices concern at London conference over the long arm of US swaps regulations
Exemption clarity allows market participants to prepare for new regime
Banks, market infrastructures and industry associations prepare to move forward with regulatory preparation, now that swaps and forwards are set to be exempt
Industry hails US Treasury exemption for FX swaps and forwards
FX exemption clarity in the US puts pressure on Europe to take a similar position, argue senior industry officials
Treasury exemption decision leaves Europe divided
Representatives of the Commission, Parliament and Council voice different opinions about whether the US determination warrants a rethink on European rules
FXall looks to Sef licence to boost liquidity
Chief executive Phil Weisberg suggests banks might choose to outsource some elements of their single-dealer business to multibank platforms such as FXall, when Dodd-Frank Sef rules become binding
US Treasury will exempt FX swaps and forwards from Dodd-Frank
Afme's global FX division welcomes the decision, announced on April 29, and calls on European rule-makers to follow suit
Splits emerge in CFTC and SEC swap product definition rules
Agencies largely aligned, but conflicts remain after 10-month negotiation
US Treasury to move 'expeditiously' on FX exemption
Assistant secretary to the Treasury Mary Miller recognises the need to clarify the regulatory regime for FX swaps and forwards sooner rather than later
Mifid proposals on organised trading need a rethink, insists FSA official
Regulator argues the EC should create a derivatives trading venue category to allow European institutions to meet G-20 commitment on organised trading
Clearing discussion still in flux, says Esma chair
In his first public speech since becoming head of key regulatory body, Steven Maijoor gives no hint as to whether FX swaps and forwards might be exempted from mandatory clearing
FX dealers commit to greater standardisation in latest Fed letter
Voluntary OTC commitments touch on standardisation of FX products and the selection of a trade repository for the FX market by Q2 2012
Isda raises concerns over Russian netting laws
But despite the challenges involved, banks and brokers are excited by the progress being made to open up the Russian market
Asian legislators await international clarity on OTC and FX regulation
Market participants suggest authorities in Asian countries are unlikely to make decisions on OTC regulation and the treatment of FX contracts until the rules become clearer in the US and Europe
EU Council disputes Esma’s power to determine clearing eligibility
Legal precedent suggests European Commission might have to determine which contracts should be cleared under new derivatives rules, rather than Esma as originally planned
Velentza to head EC’s new financial stability unit
Ugo Bassi to take over as head of securities markets and Mifid review