By allowing international investors to purchase equities with offshore renminbi and permitting its greater use as collateral, Chinese regulators are further increasing the circulation of a currency that is already inching toward global reserve status.
The European market infrastructure regulation, a package of new rules to reduce systemic risk in OTC derivatives trading, will not be finalised until the new year after authorities failed to agree key rules related to oversight of central counterparties.
Japanese regulator the Financial Services Agency has ordered Citi to restructure its internal control systems and risk management technology following breaches of Japanese securities law.
Plans by the London Stock Exchange to open a trade repository for OTC derivatives suggest intensifying competition between infrastructure providers ahead of new swap clearing requirements, but indemnification disputes have also prompted fears of equity-style data fragmentation.
Planned revisions to MiFID must guarantee that financial markets serve the real economy, said Markus Ferber MEP, who will play a key role in guiding the legislation through the European Parliament as rapporteur for its Economic and Monetary Affairs committee.
Paul Winchester has been appointed as head of exchange-traded derivatives and OTC clearing sales within the State Street Global Markets business, based in London. He reports into Steve Winter, global head of futures and OTC clearing. ??
The Hong Kong Exchange is planning to initiate after-hours futures trading from the second half of 2012, subject to the approval of necessary rule amendments by Special Administrative Region’s watchdog, the Securities and Futures Commission.
FTSE International’s decision to increase the minimum free float threshold for UK incorporated companies to 25% of a company’s equity has been hailed as a “step in the right direction but does not go far enough, according to The National Association of Pension Funds.
New over-the-counter derivatives regulations in Asia will impose significant cost burdens on market participants, while the fragmentation of the region’s markets is expected to spur competition among clearing houses.