Author: Simon Lafrance
LIBOR’s future in jeopardy?
The significant improvements brought to the most famous IBOR might prove a pointless exercise. Improvements to LIBOR Further to the Wheatley Report in the UK, LIBOR was brought under the regulatory scope of the FCA as the first (and only) specified benchmark. The administration of LIBOR was transferred from the old BBA LIBOR to the […]
ISDA prays BCBS and IOSCO for a grace period
On 18 August 2014, ISDA sent a letter to BCBS and IOSCO requesting a two year extension to international implementation of the margin rules for uncleared derivatives. BCBS-IOSCO Framework was finalised in September 2013 and favours international implementation in December 2015, with phase-in until December 2019. The letter is the latest outgrowth of coordinated efforts […]
A little bit more than a footnote for pre-LOUs
On 26 August 2014, the Regulatory Oversight Committee (ROC) published an updated version of the Principles to be observed by pre-LOUs that wish to integrate into the Interim Global Legal Entity Identifier System (GLEIS). One generous footnote was added, which provides further clarification on the mandatory conditions for endorsement: 1. Adherence to the Principles as […]
Four SIPS is enough
On 21 August 2014, the Governing Council of the ECB announced that it has identified four systemically important payment systems (SIPS): TARGET2 (operated by the Eurosytem), EURO1 and STEP2-T (both operated by EBA CLEARING) and CORE(FR) (operated by STET) The SIPS are given one year to comply with the Regulation on oversight requirements for SIPS […]
2014 Credit Derivatives Definitions Protocol out of the gates
On 21 August 2014, ISDA published the 2014 ISDA Credit Derivatives Definitions Protocol. Members and non-members can adhere by 12 September 2014. Citigroup is the first entity to adhere to the protocol. The protocol should enable the adhering parties to effectively transition to the new 2014 ISDA Credit Derivatives Definitions, published earlier this year and […]
BaFin plays rough with EMIR
At a time where an unknown number of institutions covered by EMIR are still figuring out what LEI means, sitting on their hands as partners in crime with national regulators which are equally puzzled with enforcement of trade reporting obligations, BaFin shouts Eureka. Risk.net has published an article outlining the drastic solution put in place […]
ESMA releases a list of CCPs for Non-EEA countries
On 12 August 2014, ESMA released an updated list of CCPs established in non-EEA countries which have applied for recognition under EMIR. ASX Clear Pty Limited was added to the list, which makes it the second and last CCP operated by the Australian ASX Clearing Corporation to seek recognition under EMIR. The list remains subject to […]
ISDA early termination to be suspended
On 6 August 2014, 11 US banks received a reminder by their regulators that the rights on early termination in their ISDA Master Agreements will require material changes in order to provide credibility for their living wills. This comment likely applies to every institution which is required to produce a living will under the Dodd-Frank […]
Poison for toxic products
On 5 August 2014, EBA published a Consultation Paper on the draft technical advice about the factors warranting an intervention on structured deposits. Intervention powers include prohibition or restriction on the marketing, distribution or sale of structured deposits. In its mandate letter, the Commission stressed the fact that the technical advice would need to closely align with […]
ISDAfix lines up to get its IOSCO fix
On 1 August 2014, ICE Benchmark Administration Limited (IBA) formally assumed the role of ISDAFIX administrator. IBA confirmed that ISDAFIX will undergo major changes by moving from a polled submission model to a methodology based on actual transactions and/or executable quotes. This reflects one of the key orientations outlined in the IOSCO principles on financial […]