Derivatives Reform – Industry News

CSA seek comment on derivatives Model Rule for customer clearing and protection of customer collateral and positions

/Canada NewsWire, Toronto, Jan. 16, 2014/ –  The Canadian Securities Administrators (CSA) today published for comment CSA Staff Notice 91-304 Model Provincial Rule Derivatives: Customer Clearing and Protection of Customer Collateral and Positions, (Model Rule). The Model Rule is intended to increase the protection of customer collateral and positions, and to increase the resilience of derivatives clearing agencies. Canadian and international initiatives mandating the clearing of over-the-counter (OTC) derivative transactions will cause certain market participants, who are not clearing members at a derivatives clearing agency, to clear their OTC derivatives transactions indirectly through market participants that are clearing members (or otherwise provide clearing services). The Model Rule published today would ensure that customer clearing provides customers with a high level of protection. The rule requirements relate to segregation and use of customer collateral, as well as  record keeping and disclosure about collateral held. [Read More…]

BNP Derivatives Boss Says Few Banks Making Money in Equities

/Fabio Benedetti-Valentini and Alexis Xydias, Bloomberg, Jan. 16, 2014/ –  Most banks are losing money trading stocks in Europe when their cost of capital is considered, said the top equity derivatives executive at BNP Paribas SA. (BNP) “A lot of banks are running unprofitable equity businesses, which cannot be sustainable,” Yann Gerardin, head of global equities and commodity derivatives at France’s largest bank, said in an interview in Paris. [Read More…]

Exclusive – Derivatives may escape euro zone transaction tax: document

/Huw Jones, Reuters, Jan. 16, 2014/ – The “bogeymen” of derivatives and securitised debt, blamed for deepening the financial crisis, may escape a new euro zone transactions tax as policymakers fear harming funding for companies and the economy, a document seen by Reuters showed. The 11 euro zone countries currently discussing the tax, which include France and Germany but not Britain, are meeting on Thursday to hammer out a revised proposal for the tax, which will make banks repay some of the public money that kept them going during the 2007-09 financial crisis. [Read More…]

It Cost JPMorgan $1.5 Billion to Value Its Derivatives Right

/Matt Levine, Bloomberg, Jan. 16, 2014/ – Last quarter, JPMorgan’s financial results included a $1.5 billion loss due to implementing a funding valuation adjustment in its accounting for uncollateralized over-the-counter derivatives and — wait, where are you going? Somewhere where people don’t talk about accounting and derivative valuation? Oh, yeah, okay, that’s fair, I cannot really argue with you. Go in peace. [Read More…]

Europe Reaches Agreement on Trading of Derivatives

/Danny Hakim, The New York Times, Jan. 15, 2014/ –  The three branches of the European Union government reached an agreement on Tuesday night to more tightly regulate the trading of derivatives and other complex instruments, striking a compromise after a flurry of lobbying by oil and commodity interests. The sweeping new rules aim to head off the kind of unexpected shocks that can cripple the global financial market. Europe has lagged the United States in taking such steps after the financial crisis, and the new regulations were three years in the making. [Read More…]

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Related Event

Derivatives Reform - Canadian Institute

When: Tuesday, January 28 to Wednesday, January 29, 2014

Where: One King West Hotel, Toronto, Ontario

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