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Posts Tagged ‘Derivatives Market’

Signs emerge that Europe, U.S. are diverging on derivatives reform

January 7th, 2010

Before You Invest

Policymakers in Europe and the U.S. will kick off the year by tackling the overhaul of financial regulation, including rules related to the derivatives market. However, indications are coming to light that the U.S. and Europe are diverging in their approach to overhauling derivatives regulation. “Should there be a disparity between levels of capital charges, market participants will simply move to the business center with lower capital charges,” said David Clark, chairman of the Wholesale Market Brokers Association.

Posted in Finance Fraud

Tags: Brokers Association, Business Center, Capital Charges, Derivatives Market, Disparity, Europe, Market Participants, Policymakers, Signs, Wholesale, Wholesale Market

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Regulating derivatives could do more harm than good

October 23rd, 2009

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Rep. Eric Cantor, R-Va., writes that lawmakers are focusing on an easy target — the derivatives market — rather than identifying and tackling the root causes of the global financial crisis. Cantor, the Republican whip, warns that new regulations being considered by Congress could do irreparable damage to businesses and consumers. “Rather than the tool for gross financial manipulation it is portrayed to be, the derivatives market plays a very important role in solidifying the competitiveness of American businesses,” Cantor writes.

more at http://www.investors.com/NewsAndAnalysis/Article.aspx?id=509198

Posted in Finance Fraud

Tags: American Businesses, Competitiveness, Congress, Consumers, Derivatives Market, Easy Target, Eric Cantor, Global Financial Crisis, Investors, Irreparable Damage, Lawmakers, Manipulation, Plays, Republican Whip, Target Market, Tool

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CME downplays reliance on OTC for growth

October 1st, 2009

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(Reuters) – CME Group Inc.’s overall growth is “absolutely not” dependent on its over-the-counter clearing venture, the head of the world’s biggest derivatives exchange operator said on Thursday.

Chicago-based CME has for nearly a year planned to clear OTC-traded credit default swaps.

OTC clearing is a “very compelling and significant growth opportunity for us, but I think it’s additive to the growth that I think we can achieve through these other things,” CEO Craig Donohue told investors.

He said there is a “global expanding pie in derivatives,” adding that markets in North America and Europe are fairly mature while those in emerging markets are relatively immature.

Kim Taylor, a CME managing director, added at the investor meeting that the company expects its European clearinghouse for CDS and other products to get British Financial Services Authority approval by about year’s end.

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Posted in Finance Fraud

Tags: Central Counterparty, Clearinghouses, Craig Donohue, Credit Crisis, Credit Default Swaps, Derivatives Market, Emerging Markets, European Venture, Exchange Operator, Futures And Options, Global Futures, Growth Opportunity, Intercontinentalexchange Inc, Kim Taylor, Launch, Nasdaq, Options Market, Otc, Reuters, Trillion

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Geithner presses Congress for rules on derivatives market

July 10th, 2009

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Treasury Secretary Timothy Geithner is seeking laws for the $592 trillion derivatives market. Geithner is set to testify before a joint hearing of the House Agriculture and Financial Services committees to call for requiring all “standardized” contracts to be traded on exchanges or other regulated platforms. Disclosure rules also would apply to the derivatives contracts, Geithner said.

more at

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPEwq7aBXjn0

Posted in Finance Fraud

Tags: Agriculture, Amp, Committees, Congress, Contracts, Derivatives Market, Disclosure Rules, Financial Services, Pid, Platforms, Sid, Timothy Geithner, Treasury Secretary, Trillion

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Treasury adopts banks’ recommendations in derivatives regulation

May 26th, 2009

Before You Invest

The Treasury’s proposal to regulate the over-the-counter derivatives market includes suggestions from Goldman Sachs, Credit Suisse, JPMorgan Chase and Barclays. In February, the banks told the Treasury that the Federal Reserve should expand regulatory practices to hedge funds and corporations, which do not face minimum capital and margin levels.

more at

http://www.bloomberg.com/apps/news?pid=20601109&sid=aMMeY6OodQW4&refer=exclusive

Posted in Finance Fraud

Tags: Amp, Barclays, Chase Banks, Corporations, Credit Suisse, Derivatives Market, Federal Reserve, Goldman Sachs, Jpmorgan Chase, Pid, Proposal, Regulatory Practices, Sid, Treasury

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Energy market gets caught up in derivatives crackdown

May 18th, 2009

Before You Invest

Regulators are pushing for over-the-counter derivatives to trade through a clearinghouse so failed trades would not cause a domino effect. While commodities make up only 2% of the massive derivatives market, participants in the energy market said the crackdown could make trading much more complex. “In what regulators are attempting to accomplish here, energy is the dolphin getting caught in a tuna net,” said Michael Cosgrove of GFI Group.

more at

http://online.wsj.com/article/SB124260335094228561.html