Europe waits on new capital rules

December 1, 2014 05:57 AM
Exchange Shorts

Europe will formally delay new capital rules for banks, as it continues to discuss with the U.S. over recognition of the latter as having “equivalent” rules to oversee clearing houses, the FT reported. According to Patrick Pearson, head of the financial market infrastructure unit at the European Commission, stated that Brussels may revise its deadlines for the forthcoming introduction of mandatory clearing for interest rate swaps, admitting that there were flaws in the EU’s rulemaking.

European Network Exchange: data on ENX’s cash and derivatives market indices was not being disseminated on Thursday as a result of a technical incident and opening quotes were delayed, Reuters reported.

LCH.Clearnet classified its cleared OTC commodities derivatives contracts as Block Futures, in response to market and member demand, Commodities Now reported. Baltex and Cleartrade Exchange (CLTX) will be the first platforms to register dry bulk FFA trades.

FCA will come under scrutiny from UK lawmakers debating whether thousands of small firms which were wrongly sold interest rate hedging products were treated fairly in a compensation scheme it had set up.

LCH.Clearnet’s expects 2014 to be the first year that the notional outstanding value of interest rate swaps will decline as a result of regulatory changes. According to SwapClear global head, Daniel Maguire, “less really is more when it comes to notional outstanding…market participants recognize that streamlining portfolios reduces leverage ratio, capital and risk as well as boosting efficiency at an institutional and industry level.”

CME fined trader Igor Oystacher $150,000 for trying to manipulate oil and metals markets, Bloomberg reported.

ISDA appointed Societe Generale SA’s Eric Litvack as board Chairman starting January 1, replacing Stephen O’Connor, Bloomberg reported.

Dubai Commodities Clearing Corporation (DCCC) launched a new service that will allow clearing members to settle their transactions in UAE Dirhams (AED) in addition to USD. The facility has been made available following the second upgrade of DCCC’s EOS-Clear, its new state-of-art clearing platform.
About the Author

Bernardo Mariano brings to ERDesk his experience structuring private deals for the acquisition of mutual exchanges. Prior to joining ERDesk Bernardo worked as a Director for Instinet and later, CEO of Reuters' Bondex. He holds an MS in Economics from University of Illinois and an MIA in Finance from Columbia University. He can be reaced at be reached at