Australia
ASX and LCH battle for Australian clearing market
Two's a crowd?
Lack of CSAs restricts forex hedging options for Australian institutions
Returns for hedging via long-term cross-currency swaps are attractive, but few are able to do so because of the lack of credit support annexes in place
Mandating clearing will have little impact on Australian market development
Australian regulators are looking at whether to mandate clearing of OTC derivatives, but the market is already moving to clear without a mandate in place
Australian banks lobby for reduced margin on cross-currency swaps
Current treatment of initial margin on uncleared swaps will cost Australian banks $21 billion
Lack of co-ordination of bank resolution regimes behind subsidiarisation push
Asia still behind on global rules forcing subsidiarisation of foreign banks in the region
Australian regulators unveil criteria for mandatory clearing
Three regulators, including the RBA, reveal how they will decide whether and when to implement mandatory clearing requirements for OTC derivatives
Asia-based cat bond issuance unlikely
A catastrophe bond from an Asian-based issuer is unlikely in the near term due to the high cost relative to traditional reinsurance
Basel Committee secretary-general to head Australian regulator
Wayne Byres is set to become chairman of the Australian Prudential Regulation Authority when his term as secretary-general of the Basel Committee on Banking Supervision ends
Asia corporates unfairly ‘penalised’ by CVA capital charge
The move by European authorities to exempt European banks from holding CVA capital should be matched by regulators in Asia, according to senior bankers in the region
Concerns over high-frequency trading overstated, says Australian regulator
Asic less concerned with high-frequency trading but is clamping down on dark pool operators
Asian thermal coal swaps trade picks up steam
The China-based API8 index has provided a risk management solution to the coal contract defaults that befell the industry last year and is gaining traction as one of the latest Asia-based commodity derivatives
Newedge to offer OTC clearing in Asia
Broker seeks to broaden its Asia offering by adding OTC IRS clearing in Singapore
Rise in CCPs may spur collateral fragmentation
Currency controls
Central clearing obligations cause collateral headaches in Asia
Collateral thinking
ASX to use cross-margining efficiencies in battle for Australia clearing market
Australian domestic clearing house hoping to use lower margin costs as a means to win market share
Hong Kong retirement funds may be exempt from Fatca
The largest pension schemes in Hong Kong can potentially be exempted from Fatca after being judged by the US to be low risk for tax evasion
Asian covered bond market set to take off
Running for covered
Asia needs bigger voice in international financial rule-making
Regulators from Malaysia, Dubai and Australia call for more countries in the region to take a stronger role in shaping the global agenda
Lack of clarity over clearing provides problems for Asia banks
The deadline set by the G-20 to clear all standardised OTC derivatives has passed but a lack of regulatory clarity over the shape of reform is hampering banks in the region
Asia regulators try to work together as trade repository regimes begin in 2013
The move to central clearing will generate a wealth of information on derivatives around the region – but making use of this requires both trade repositories and data sharing. Progress on both has been slow
Mandate watch: BNY Mellon wins four mandates from Touchstone
Touchstone appoints BNY Mellon to four more funds as the year ends with a steady stream of securities services mandates
Asic to consult on trade repositories in first quarter 2013
The Australian securities regulator is looking to consult on its trade repository plans at the end of the first quarter, with an eye to implementing the regime later in the year
Four of five largest Australian banks look to clear with LCH
LCH.Clearnet makes inroads into the domestic Australian market with its SwapClear service