J Christopher Giancarlo

Shift to alternative rates slowed by accounting issues

The regulatory driven shift away from Ibors to alternative near risk free rates is happening surprisingly quickly, but could be even faster if various accounting and operational issues are addressed more swiftly

FSB voices concern over CLOs with many new reports scheduled

Despite there being few signs of imminent threats to financial stability, the Financial Stability Board (FSB) restated its concerns over the growth of collateralised loan obligations (CLOs) at its plenary meeting in New York on April 26 and promises a raft of reports on various aspects of the financial system.

EU recognises most of Japan’s uncleared OTC derivatives regime

Japan’s rules governing uncleared over-the-counter (OTC) derivatives have been recognised as equivalent to the European market infrastructure regulation (Emir) by the European Commission, though not its risk mitigation processes.

Think tank makes six recommendations to make Basel III work better for developing economies

There have long been complaints that the Basel III Framework with its emphasis on lowering risk inadvertently discriminates against developing economies and to address this a global think tank has come up with six recommendations.

Charlie Browne

Banks should think twice before diving head first into the data pool

Data pooling has emerged as a strong contender for meeting non-modellable risk factors in FRTB. However, it is far from being a perfect solution and at worst it could be a distraction

FSB sees more work to be done on resolution regimes

Much work has been done in member jurisdictions to build frameworks to resolve failing banks and a variety of approaches are being taken, however, the Financial Stability Board (FSB) still sees scope for improvement.

DSB designated UPI service provider by FSB

The Derivatives Service Bureau (DSB) has been designated as unique product identifier (UPI) service provider by the Financial Stability Board (FSB) at its meeting on April 26 as part of strengthening governance of the global financial system.

Standard setters give regulatory relief for some legacy swaps

Global standard setters said legacy non-centrally cleared derivative contracts do not need amending to address interest rate benchmark reforms and do not need to apply margin requirements.

Academic warns about potential ETF systemic risks

Exchange traded funds (ETFs) could exacerbate price swings during periods of market volatility and trigger a systemic event, warned an academic.

US and Singapore recognise each others’ derivatives trading venues

US and Singapore announced on March 13 that they have decided to grant mutual recognition regarding certain derivatives trading venues.