Conversation Starter
LCH.Clearnet’s SwapClear FCM Service Launches
Press Release
LCH.Clearnet Ltd’s (LCH.Clearnet) SwapClear Futures Commission Merchant (FCM) service was launched yesterday. U.S. interest rate swap (IRS)
clients are now able to access this market leading service through any of the 12 FCMs already connected to the service. Six clients have cleared
executed OTC IRS trades on SwapClear in a variety of maturities and currencies, including USD, EUR and GBP.
http://jlne.ws/h3wzux
**CN: SwapClear is a global clearing service for over-the-counter (OTC) interest rate swaps run by LCH.Clearnet Ltd. According to the company,
SwapClear currently clears more than 40 percent of the interest rate swap market, representing trades with a total notional principal of $252 trillion.
Head of sales and marketing in the U.S. for SwapClear, Floyd Converse, fielded some questions from John J. Lothian & Co. senior editor and
producer Christine Nielsen.
1) Please tell me a little about the U.S. SwapClear FCM service. What is the goal of that service?
F.C.:
We are excited about the announcement and launch of our FCM model for U.S. clients. This service will allow U.S. buy-side clients to clear OTC
derivatives with the most experienced global interest rate derivative clearer and in full compliance with U.S. rules and regulations. The main goals of the
services are to provide clients with reduced counterparty risk, default protection, portability of collateral and positions as well as proven default
management expertise in OTC derivatives.
2) Who do you see as your main competition in this area? Why?
F.C.: We anticipate there being fierce competition in this area. There are several strong competitors, but we feel there are three main factors that put us in an excellent position. First, while OTC derivative clearing will be new for US clients, we have been clearing OTC derivatives since 1999. We currently have a strong interbank business with over USD 250 trillion notional and 850,000 trades outstanding. Also, we have a proven track record. In 2008, we managed the Lehman Brothers default with no loss to any of the market participants. This involved successfully closing out over 66,000 trades ($9 trillion notional)
without any external financial assistance and the return of excess collateral. Second, we offer the most extensive product mix that includes OIS swaps, flexible payment and maturity dates, flexible LIBOR indices as well as 14 currencies, with six more in the pipeline. We are keen to expand this further, andin response to demand from U.S. regional banks for clearing for amortizing swaps, we are planning on launching this service later this year. Finally, we have demonstrated commitment to the business and the U.S. client base. Our FCM offering was launched after extensive consultation with clients and they continue to be involved in the ongoing development of our service, be it for product developments or service enhancements. In order to serve them better, we are expanding our NY office in all areas: sales and marketing, product and risk management and middle and back office.
3) How would you characterize the playing field right now in the regulated OTC space?
F.C.: Competition is set to increase as more banks look to expand in the rates business over the next few years. Another interesting development since Lehman has been the increased move toward more plain vanilla products and a fall in the number of exotic and leveraged deals. By the end of the year we expect SwapClear to be able to clear approximately 90 percent of all plain vanilla trades globally.
4) LCH.Clearnet was first with the use of OIS rate curves to discount IRS. Is there an advantage to being the first to introduce in the current
environment for these products?
F.C.: We feel there is a huge first-mover advantage to certain parts of this business. Introducing OIS discounting was important because, in some currencies, the market had moved toward OIS and away from LIBOR. The move enabled us to serve this market demand and also ensured our portfolio valuations were more accurate and our risk management was more robust.
5) How did you come to LCH.Clearnet? What is your background?
F.C.: Most of my career has been spent at large dealers in the sales, marketing and structuring of OTC interest rate and currency derivatives. I was looking at some ISDA stats the other day and the notional amount outstanding of all trades my first year in the business was just under 900 billion. By the end of 2009, it was approximately 425 trillion. As the market moves forward, clearing and transparency seem to be the next step. This role is exciting as I get to continue to be involved in OTC derivatives as well as work in a powerful organization that can help shape the future of the markets.
6) What do you feel will be the next step in the evolution of the regulated OTC market? Why?
F.C.: Clearing and transparency are themes that will dominate the institutional OTC rates business over the next couple of years. Many clients, swaps dealers and FCMs are adjusting their systems, models and business practices in anticipation of the regulation currently being written as a result of the Dodd Frank Act. Our SwapClear service is well positioned to take advantage of this evolution.
7) How might a hike in interest rates impact the use of a regulated OTC market?
F.C.: Hopefully a rate hike would be the result of stronger economic growth. If that is the case activity in OTC derivatives should increase as most clients would see balance sheets expanding. For example, as banks see loan demand increase, usage of amortizing swaps would be an important part of their business. This is one reason why we will have the capability to clear these structures later this year.
8) What can we expect to see from LCH.Clearnet going forward? What will be some areas of focus for the OTC space?
F.C.: LCH.Clearnet will continue to grow and expand products and services in the U.S. and around the globe. We are looking to clear other OTC products in the U.S .and considering establishing clearing businesses in other countries. The next few years are going to be very exciting in the clearing business. LCH.Clearnet, with its unique breadth of expertise, is well positioned to be very competitive.
Lead Stories
Americans in Poll Lack Confidence in Economic Recovery
By Mike Dorning and Jonathan Salant, Bloomberg
Only 1 American in 7 has faith a lasting economic recovery has taken hold and a plurality say they are personally worse off than they were two years ago.
http://jlne.ws/frk5kU
Bundesbank's Weber Goes to Chicago
By Brian Blackstone, WSJ.com
After years spent weighing the pros and cons of bank rescues, Greek and Irish bailouts and ECB interest rates as head of Germany’s Bundesbank, Axel Weber‘s biggest decision this summer may be Cubs or White Sox.
http://jlne.ws/fLpLmq
**CN: Didn't Mr. Smith (of Mr. Smith Goes To Washington) stand alone against corruption and graft? What is the copywriter who wrote this headline implying about Chicago?
Longer-term deflation probabilities remain low
Federal Reserve Bank of Atlanta
Prices of Treasury Inflation-Protected Securities (TIPS) with similar maturity dates in 2015 can be used to measure probabilities of a net decline in the consumer price index over the five-year period starting in early 2010. One measure of the deflation probability was 9 percent on March 9, down from 10 percent a week earlier. An alternative lower bound on this deflation probability was 0 percent on March 9. This figure has been below 1.0 percent for nearly two months.
http://jlne.ws/hnTxrY
ECB: Ready to Act Against Inflation
BY NINA KOEPPEN, WSJ.com
The European Central Bank Thursday maintained its stark anti-inflation rhetoric, warning that "strong vigilance is warranted" to contain inflation risks.
http://jlne.ws/gn7si3
ISDA Lends Support To Reform Efforts To Improve Regulation, Functioning, And Transparency Of Financials, Commodities
Press Release
The International Swaps and Derivatives Association, Inc. (ISDA) welcomes the efforts of the European Commission and lends its support to reform efforts to improve the regulation, functioning, and transparency of financial and commodity markets whilst preserving the ability of those markets to serve the real economy by allowing commercial participants to hedge risk effectively.
http://jlne.ws/gMflSV
Trade Deficits Widen In U.S. And China, More Report Jobless Claims
By Heather Struck, Forbes
The U.S. trade deficit widened in January, says the Department of Commerce, $46.3 billion from a revised $40.3 billion in December. Imports increased by $10.5 billion and exports increased $4.4 billion month to month.
http://jlne.ws/hdJvnu
Fed Gives Markets Clues on Exit From Unprecedented Easing
By Caroline Salas, Bloomberg
The Federal Reserve is trying to let investors know that, even as it pursues an unprecedented expansion of monetary stimulus, it hasn’t forgotten about exiting.
http://jlne.ws/f5Hw2e
**CN: CME Group's Fed Watch tool is showing expectations priced into Federal Funds Futures for about a 57 percent chance of a 25 basis-point rate hike at this month's Federal Open Market Committee meeting.
Pimco cuts US Treasuries holdings to zero
By Dan McCrum and Michael Mackenzie in New York, Financial Times
The world’s biggest bond fund has cut its holdings of US government-related debt to zero for the first time since early 2008 in the latest sign of increasing investor expectations of rising interest rates.
http://jlne.ws/eOPZW8
White House Fears Budget Cuts Will Hurt Trade Leverage
By Ian Talley, WSJ.com
The Obama administration fears the U.S. could cede substantial political power and trade leverage with emerging nations around the globe under proposed Republican budget cuts that slashes funding for international programs.
http://jlne.ws/gwUwpM
Move to ‘synthetic’ US junk bonds
FT.com
Demand is growing for “synthetic” financial instruments that enable investors to take positions in the US junk bond market without owning the underlying securities. The instruments, created by using credit derivatives on junk bond or high-yield indices, resemble transactions linked to US mortgages that proliferated before the financial crisis.
http://jlne.ws/h8gDwH
Bowles, Simpson Say Fiscal Crisis Could Come in 2 Years or Less
By Damian Paletta, WSJ.com
Erskine Bowles and Alan Simpson, who co-chaired the White House’s deficit-reduction commission last year, said at a Senate Budget Committee hearing on Tuesday that the United States could face a destabilizing fiscal crisis in two years or less.
http://jlne.ws/gl4Z35
Remarks by Chairman and CEO Rick Ketchum at the FINRA Fixed Income Conference—3/7/11
Audio Download
http://jlne.ws/hi3itw
Bill Gross: Of Course The Wealthy Should Pay Higher Taxes Corporations Too
Yahoo! Finance
Add PIMCO founder Bill Gross to the list of wealthy Americans who think they aren't being taxed enough, already. "Of course we should" pay higher taxes, Gross says. "Higher income groups have enjoyed an enormous privilege ever since the Reagan tax cuts...and actually ever since Kennedy began the process back in the ‘60s."
http://jlne.ws/fxSnSH
Bond Investors Step Up as Trustees Balk
BY RUTH SIMON AND DAN FITZPATRICK, WSJ.com
Forget it. We'll do it ourselves. That's the position being taken by some bond investors as they seek to recoup their losses from mortgages that were packaged into securities and then went bad.
http://jlne.ws/fvhkbH
White House battles to fill jobs
By Tom Braithwaite in Washington, Financial Times
The White House is struggling to fill key financial posts in the administration as a combination of Senate opposition and candidates’ reluctance to join up leaves critical positions empty.
http://jlne.ws/e0k23H
US fiscal reality ignored by ‘starving the beast’
By Robin Harding in Washington, Financial Times
The current debate on US fiscal policy has been shaped by two manoeuvres from the past decade: a dose of “starving the beast” early in the decade, followed by the stimulus acts of 2008 and 2009. That sequence has turned out to matter a great deal. The result looks like a political triumph for small-government advocates of “starving the beast”: cutting taxes in order to force future cuts in spending.
http://jlne.ws/hPECju
Greenspan Says Government ‘Activism’ Hampering U.S. Recovery
By Scott Lanman, Bloomberg
Former Federal Reserve Chairman Alan Greenspan said a surge in U.S. government “activism,” including fiscal stimulus, housing subsidies and new regulations, is holding back the economic recovery.
http://jlne.ws/h139po
Fed Policy Makers Signal Abrupt End to Bond Purchases in June
By Craig Torres, Scott Lanman and Steve Matthews, Bloomberg
Federal Reserve policy makers are signaling they favor an abrupt end to $600 billion in Treasury purchases in June, jettisoning their prior strategy of gradually pulling back on intervention in bond markets.
http://jlne.ws/eAZ6Hi
Republicans, Fed Clash on Job Impact of Spending Cuts
By Lisa Lerer, Bloomberg
U.S. Representative Kevin McCarthy thought he had an ally in Federal Reserve Chairman Ben Bernanke on the impact that Republican budget cuts will have on jobs.
http://jlne.ws/ghDGIk
Events
The 36th Annual International Futures Industry Conference
March 15-18, 2011
FIA's Annual Convention - Boca Raton
http://jlne.ws/i207Ve
NYC Financial Regulation - Implications For Asset Management
March 16, 2011
Presented By Operational Risk Committee of the International Association of Financial Engineers - New York
http://jlne.ws/i4xA2a
SIFMA 2nd Annual Private Client Conference
Apr. 7 and 8, 2011
SIFMA's Conference For Private Client Groups At All Levels - New York
http://jlne.ws/htYf3e
Fixed Income Summit
Apr. 28, 2011
Pensions & Investments' One-Day Conference - Chicago
http://jlne.ws/ezwy1m
2011 Morningstar Investment Conference
June 8-10, 2011
Morningstar's Conference For Leaders From Across The Investment Industry - Chicago
http://jlne.ws/gD5nJ1
Economic News
Consumer Comfort in U.S. Drops to One-Month Low on Fuel
By Shobhana Chandra, Bloomberg
Consumer confidence fell last week to the lowest level in a month as surging gasoline prices soured Americans’ outlook about their finances and the economy.
http://jlne.ws/ewjEQh
Solis Says 1.5 Mil Private Jobs Created in Past Year
YouTube/ Bloomberg
U.S. Labor Secretary Hilda Solis discusses the U.S. February employment report and the outlook for the economy. Solis speaks with Betty Liu on Bloomberg Television's "In the Loop."
http://jlne.ws/eiIKu0
Exchanges, Clearing Houses & MTFs
New York Portfolio Clearing Names Independent Board Members
NEW YORK, NY—March 9, 2011—New York Portfolio Clearing, LLC (NYPC), the innovative derivatives clearinghouse that will deliver “one-pot” margining of proprietary interest futures positions cleared by NYPC with fixed income cash positions cleared by The Depository Trust & Clearing Corporation’s Fixed Income Clearing Corporation, today announced the election of Bernard Dan, Richard Prager and Tom Wipf as independent members to its board of directors. These appointments add significant independent expertise in the strategic development, risk management, regulation and operations of NYPC. NYPC, which is expected to create significant capital efficiencies through this “one-pot” margining arrangement, will begin operations on March 21st.
http://jlne.ws/iivGnj
ELX EXTENDS QUARTERLY MONTHS FOR EURODOLLAR FUTURES CONTRACTS TO 5 YEARS FROM 2 YEARS
New York, Mar 9, 2011 – ELX Futures, L.P. (ELX), a leading electronic futures exchange, announced today that it will extend quarterly months for its Eurodollar futures contracts to 5 years from 2 years, effective March 14, 2011.
www.elxfutures.com
CME Group Names Michel Everaert as Managing Director, OTC Solutions
LONDON, March 8, 2011 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced that it has named Michel Everaert as Managing Director, OTC Solutions. Everaert, 42, is responsible for overseeing OTC pre- and post-trade products. He will be based in London and will report to Laurent Paulhac, Managing Director, OTC Products & Services.
http://jlne.ws/cjpXe7
CME disagrees with S And P's safeguard concerns
CME Group Inc (CME.O), the world's largest derivatives exchange operator, said it disagrees with ratings agency Standard And Poor's decision to put the company's debt rating on CreditWatch Negative over a new plan to cut trading costs.
http://jlne.ws/gSfhpB
Firms & Banks
JPMorgan Says Dodd-Frank Rules Favor Europe's Banks
By BEN PROTESS, DealBook
New financial regulations emerging from Washington could increase the bottom lines of some banks — just not banks on Wall Street.
http://jlne.ws/g76cZQ
Wells Fargo’s Sloan Avoids Spiders, Octopuses in Rise to CFO
By Dakin Campbell, Bloomberg BusinessWeek
Timothy J. Sloan’s rise to chief financial officer at Wells Fargo & Co. may have been cemented by what he didn’t do, not just what he did.
http://jlne.ws/gq9hgx
Court throws out San Marino bank case vs Barclays
Reuters UK Focus via Yahoo! UK and Ireland Finance
Barclays Plc on Wednesday won a court case brought by a small San Marino bank that accused the UK bank of misselling it complex financial products, seen as a test case for the sale of derivatives.
http://jlne.ws/hzIQ78
Morgan Stanley Smith Barney To Ax 200-300 Brokers
Forbes
Revenue is still king in the brokerage world. The biggest retail brokerage firm in the world plans to cut 200 to 300 of its lowest producing financial advisors and trainees from its workforce.
http://jlne.ws/ewRvw0
Citigroup Dividend May Return in '12: CEO
TheStreet.com
Citigroup CEO Vikram Pandit reiterated the bank is likely to return capital to shareholders through a dividend in 2012. "We expect to return the North American business to profitability next year," Pandit said at the Citi 2011 Financial Services Conference Wednesday. "We are going through the regulatory process and we hope to have..."
http://jlne.ws/hDmHQX
Deutsche Bank's Jain not backed for CEO job-sources
Reuters UK Focus via Yahoo! UK And Ireland Finance
Deutsche Bank investment banking chief Anshu Jain currently does not havesufficient backing to become chief executive of Germany's flagship lender, sources close to the...
http://jlne.ws/hMHvKR
Goldman Names Bosses for Americas M And A: Read the Internal Memo
Wall Street Journal Blogs
Goldman Sachs today named two executives to lead its M&A work in the Americas. Here is Goldman's internal memo announcing these and other M And A leadership changes.
http://jlne.ws/f9tRnL
The Goldman Sachs 10,000 Women Initiative and United States Department of State Announce New Partnership
New York, March 8, 2011 - The Goldman Sachs Foundation and the United States Department of State today announced that they will join together in partnership through the Goldman Sachs 10,000 Women initiative. The announcement came on the 100th Anniversary of International Women’s Day at the State Department International Women of Courage Awards Ceremony. The public-private partnership, unveiled by U.S. Secretary of State Hillary
Clinton and Goldman Sachs CEO Lloyd Blankfein will establish a program to provide business and management training to a 100 emerging women entrepreneurs. The State Department will identify and select the participants to the program.
http://jlne.ws/etTgYi
Two Lloyds executives to leave in shake-up
By Patrick Jenkins, Banking Editor, Financial Times
Two top executives are set to leave Lloyds Banking Group as António Horta-Osório, the group’s new chief executive, moves fast to restructure his senior management team.
http://jlne.ws/eXv3L9
Tullett Prebon hit by staff defections
By Masa Serdarevic, Financial Times
A strong performance by Tullett Prebon’s Asia division failed to offset the impact of staff defections and the closure of some US offices at the interdealer broker. Terry Smith, chief executive, said that after half a decade of strong growth 2010 was “a lot duller”.
http://jlne.ws/hctiql
UBS Says Asia Profit Margins May Shrink as Banker Pay Rises
BusinessWeek
UBS AG, Switzerland's biggest bank, said its profit margins in Asia may shrink for as long as two years as competition for bankers in the world's fastest-growing major economies drives up compensation costs.
http://jlne.ws/hxHLng
Bank of America Looks to Expand Prime Brokerage
By NELSON SCHWARTZ, Financial Times
Thomas K. Montag, who oversees Bank of America Merrill Lynch’s investment banking and brokerage business, told an investor day conference on Tuesday that the bank wants to expand its prime brokerage business, providing services to hedge funds.
http://jlne.ws/hNbuS6
HSBC rolls out secure keys for internet banking
Computing.co.uk
HSBC's one-time security code generator aims to allay online banking fears
http://jlne.ws/hDCcFC
Bank of America long-term profit forecast cheers investors
By Joe Rauch, Reuters
Bank of America Corp (BAC.N) expects high expenses for the next two years as it wrestles with mortgage losses, but longer term it hopes for pretax profit of some $40 billion annually, its chief executive said.
http://jlne.ws/i1pYff
PIMCO's Gross: No Way Out Of Debt Trap Gross Says U.S. Living Standards Doomed To Fall
Debt, debt and more mounting debt is plaguing countries around the globe. In this U.S., states across the country face a collective $125 billion shortfall for fiscal 2012, while Congress is facing a budget gap nearly 10 times that size.
http://jlne.ws/gicJYx
Lehman Fires Back At ISDA
By Patrick Fitzgerald, WSJ.com
Lehman Brothers Holdings Inc. fired back at the International Swaps and Derivatives Association, the derivatives-industry trade group which recently voiced its support for J.P. Morgan Chase & Co. in a $70 billion legal battle between the two banks
http://jlne.ws/gDHQOC
Nomura’s Experts Believe That “Europe Will Work”
Press Release
Nomura, the global investment bank, today published a major 128-page study on the economic and market prospects for Europe, and particularly the euro area.
http://jlne.ws/fqgq65
Deutsche Bank Lifts Its Profile in the U.S.
BY AARON LUCCHETTI, WSJ.com
Like most of its Wall Street rivals, Deutsche Bank AG is wrestling with a pile of new rules in the U.S. that will crimp the company's risk-taking and profits. But the German bank has an extra challenge: overcoming its reputation as an outsider.
http://jlne.ws/g3uO6I
Bank of America hires UBS prime brokerage head
INO News
Bank of America Merrill Lynch on Monday named Stuart Hendel as head of its global prime brokerage unit. Hendel has held the same position at Swiss bank UBS for just under two years.
http://jlne.ws/hkbyYY
Goldman's Broadbent Appointed to Bank of England Panel
BusinessWeek
Goldman Sachs Group Inc. Senior European Economist Ben Broadbent was appointed to the Bank of England's Monetary Policy Committee to replace Andrew Sentance, who has been calling for higher rates for the past nine months.
http://jlne.ws/gRe6pb
Grübel to forgo 2010 UBS bonus
FT.com
The chief executive of UBS has waived his bonus for a second consecutive year, becoming the first big bank boss to do so amid still simmering discontent over bankers’ pay.
http://jlne.ws/gVZvz9
AIG Hires Deputy CFO
TheStreet.com
American International Group said Thursday that it has hired a finance executive from Gamco Investors to serve as deputy chief financial officer. Jeffrey M. Farber will oversee AIG's controllership and accounting policy functions as well as its global tax department. He will report to CFO David Herzog. "Jeff Farber is well prepared to help take these key AIG finance ...
http://jlne.ws/eb0RMb
HSBC looks at subsidiary model to expand in India
Business Standard India
Hong Kong and Shanghai Banking Corporation (HSBC) Bank on Wednesday said it was open to a subsidiary model for expansion in India if it was offered good opportunities. The UK-based bank also said although listing on Indian bourses was not ruled out, it was not looking at it at the moment.
http://jlne.ws/hGufOq
Auctions & Statistics
Treasury to Offer $32B 91-Days, $30B 182-Days
By Gary Siegel, The Bond Buyer
The Treasury Department said Thursday it will auction $32 billion 91-day bills and $30 billion 182-day discount bills Monday.
http://jlne.ws/fih29B
New York Fed purchases $6.690 bln in Tsy coupons
The purchase or sale of Treasury securities on an outright basis adds or drains reserves available in the banking system.
http://bit.ly/hgnnHB
U.S. adds 192K new jobs; unemployment rate dips to 8.9%
By Neil Irwin, The Washington Post
The missing piece of the U.S. economic recovery - job creation - is finally falling into place.
http://jlne.ws/e66FHj
Regulators
Concerns over latest EU bank stress tests
By Patrick Jenkins in London, James Wilson and Ralph Atkins in Frankfurt and Nikki Tait in Brussels, Financial Times
Key parts of a stress test for European banks designed to raise investor confidence in the sector have been softened by regulators despite widespread derision of a similar exercise last year, which was seen by financial markets as too lax.
http://jlne.ws/fXPTDF
Germany recovery ‘roaring’ ahead, says Weber
By Ralph Atkins in Frankfurt, Financial Times
Germany’s “roaring” economic recovery is slashing jobless queues and boosting domestic demand, according to Axel Weber, the departing Bundesbank president, who made clear his impatience for the European Central Bank to raise interest rates.
http://jlne.ws/gIYQJm
ECB Rate Rises Likely To Be Gradual
FT.com Video
Jens Larsen, chief European economist at RCB Capital Markets, tells Richard Milne, capital markets editor, that because rate rises by the European Central Bank pose such a high risk to peripheral eurozone countries, he expects any increases to be small and slow.
http://jlne.ws/fkdt5I
ECB helped fuel Irish bubble, says ex-PM
By John Murray Brown in Dublin, Financial Times
The European Central Bank was guilty of a “major failure of supervision” in not restraining lenders from fuelling the property bubble in Ireland, says a former prime minister.
http://jlne.ws/gBtF7K
US CFTC "out of step" with other regulators-Sommers
By Roberta Rampton, Reuters
The U.S. futures regulator is going too far and too fast toward pushing swaps onto new trading platforms, one of its top officials said on Monday. The Commodity Futures Trading Commission's proposed rule on swap execution facilities, which is open for public comment until Tuesday, is inconsistent with proposals by the Securities and Exchange Commission and international regulators, said Jill Sommers, a CFTC commissioner. "One of my primary
concerns is that the CFTC is moving out of step in time, substance, or both with the SEC and the rest of the world in implementing trade execution requirements for standardized swaps," Sommers said in a speech to the Institute of International Bankers.
http://jlne.ws/hCdgNj
EU lawmakers ban "speculative" derivatives trades
Reuters Finance News (EU) via Yahoo! UK And Ireland Finance
EU lawmakers have approved a ban on some trading in debt insurance derivatives from 2012 to curb what some policymakers say is speculation that deepens the euro-zone debt crisis.
http://jlne.ws/hg7BWa
Volcker may get the last laugh
eFinancial News
The Dodd-Frank regulatory reform act in the US gives banks plenty of time to adjust to its Volcker Rule, the disallowance of proprietary trading.
http://jlne.ws/i8BA16
Trichet: Central Banks Eyeing Inflation
BY NINA KOEPPEN AND NATHALIE BOSCHAT, WSJ.com
Central banks across the world are ready to do whatever it takes to avert a sustained increase in inflation expectations, European Central Bank President Jean-Claude Trichet said Monday.
http://jlne.ws/h0yEF2
Velocity of Federal Reserve deposits
Econbrowser
I've been emphasizing that the U.S. Federal Reserve has not been printing money in the conventional sense of creating new dollar bills that have ended up in anybody's wallets. Instead, the Fed has been creating new reserves by crediting the accounts that banks maintain with the Fed. Today I'd like to offer some further observations on how those reserve balances mattered for the economy historically, how they matter in the current setting, and how they may matter in the future.
http://jlne.ws/hccwWn
OTC
CFTC swap trading plan may stifle market-traders
By Roberta Rampton, Reuters
The U.S. futures regulator risks stifling liquidity in swaps market by requiring traders to ask for quotes from at least five market participants, Morgan Stanley (MS.N) and Deutsche Bank (DBKGn.DE) said in a regulatory comment period that ends on Tuesday.
http://jlne.ws/e4x4FL
Hedge funds attack curbs on EU debt swaps
By Sam Jones in London and Nikki Tait in Brussels, Financial Times
Hedge fund managers have strongly criticised new proposals approved by European Union lawmakers to ban the use of credit default swaps on “uncovered” sovereign debt, warning that the move could do significant damage to Europe’s troubled government bond markets.
http://jlne.ws/eKmJ92
Morgan Stanley Clears Client OTC Interest Rate Swaps Through LCH.Clearnet
Business Wire
NEW YORK--Morgan Stanley, a market leader in derivatives trading and clearing, announced today that it has cleared some of the first OTC interest rate swaps transactions through LCH.Clearnet Ltd's (LCH) SwapClear Futures Commission Merchant (FCM) service for U.S.
clients. "Today's announcement underscores Morgan Stanley's leadership role in central clearing for OTC derivatives...
http://jlne.ws/fRvF48
EDHEC-Risk Institute Warns The European Parliament Of The Dangers Of Banning Naked Sales Of Credit Default Swaps
In an open letter of March 8, 2011 addressed to the Chair of the Economic and Monetary Affairs Committee of the European Parliament, Sharon Bowles, and Pascal Canfin, the Committee’s Rapporteur on the draft EU regulation on short selling and credit default swaps, EDHEC-Risk Institute has warned of the dangers of prohibiting “naked” sales of sovereign credit default swaps.
http://jlne.ws/enSHpj
Global News
Moody's Downgrades Spain
BY EVA SZALAY AND TERENCE ROTH, WSJ.com
Moody's Investor Service Inc. on Thursday downgraded Spanish government debt to Aa2 with a negative outlook from Aa1 previously, triggering sharp declines for the euro and European bond prices in early European trading.
http://jlne.ws/eoS1Jk
Fitch downgrades Spain’s outlook to negative
AFP
Fitch Ratings confirmed Spain's sovereign credit rating Tuesday but downgraded its outlook to negative, blaming a weak economy, banking woes and spendthrift regions.
http://jlne.ws/fmR0nQ
Korea Pension Fund Suspends Deutsche Bank Brokerage Orders
BusinessWeek
South Korea's National Pension Service halted stocks and derivatives orders through Deutsche Bank AG for six months after financial regulators suspended the German bank from proprietary trading for a similar period.
http://jlne.ws/iaLOnA
Deutsche Bank unit raided in Seoul over alleged stock manipulation
EARTHtimes.org
Seoul - Prosecutors raided offices of Deutsche Bank AG's South Korean brokerage unit Wednesday as part of an investigation into alleged market manipulation related to a stock plunge in November.
http://jlne.ws/gJnRUi
New Zealand Lowers Key Rate to 2.5% in First Reduction in Almost Two Years
By Brendan Murray, Bloomberg
The Reserve Bank of New Zealand cut the official cash rate to 2.50 percent from 3 percent, the first reduction in almost two years, to bolster an economy teetering near a recession after the deadliest earthquake in 80 years.
http://jlne.ws/eeBV6a
Governor of the Bank of Japan Shirakawa: 150 years of innovation and challenges in monetary control
I am honored to have the opportunity today to speak at Goethe University (Goethe-
Universität Frankfurt am Main) in celebration of the 150th anniversary of German-Japanese
diplomatic relations. I would first like to express my thanks for the warm words of welcome
from Dr. Hölscher, Permanent Undersecretary of the Ministry of Finance of Hessen,
Dr. Raettig, Deputy Mayor of the City of Frankfurt, and Mr. Shigeeda, Consul-General of
Japan. I also extend my sincere gratitude to Professor Gerlach of the Institute for Monetary
and Financial Stability, who has made today’s speech possible...
http://jlne.ws/gG42G5
Bank of Spain to lift lid on banks' capital needs
By Sonya Dowsett, Reuters
The Bank of Spain is expected to show on Thursday which banks need to raise funds to meet government targets, part of measures to inject credibility into the financial system brought low by a property bust.
http://jlne.ws/hyrUR7
Spanish Bonds Decouple From Portugal
By Marc Chandler, Credit Writedowns
There have been two main surprises this year. The first is how the jasmine revolutions in MENA. It is one thing to recognize the fragility of those ancient regimes, it is another thing to watch a number of government’s collapse. The second is that the European debt crisis seems to be having a marginal influence at best on the global capital markets. We had thought this was going to be the main driver at the start of this year.
http://jlne.ws/gCZg3I
Spain's cajas may lure U.S. investment
Market Watch
U.S. hedge funds and private-equity groups are reportedly smelling profits as Spain's government tries to reform its cajas, but the welcome mat is not quite out for the savings banks, which may still not be facing up to reality.
http://jlne.ws/fdTVgZ
Egypt's foreign reserves plunge $1.7 bln in Feb
By Patrick Werr, Reuters
Egypt's net foreign reserves plunged by $1.69 billion in February, their biggest one-month
decline in over a decade as political turmoil drove capital out of the country and put pressure on its currency.
http://jlne.ws/dMrvh1
Portugal Looks More Likely to Join Greece, Ireland in Euro-Zone ICU
By Mark Brown, WSJ.com
Yields on Portugal’s 10-year bonds hit a euro-era high of 7.5% Monday as bond markets predicted that Portugal will follow Ireland and Greece and
become the next euro-zone country to ask for financial support.
http://jlne.ws/ho5bk8
Moody's cuts Greece's credit rating amid fears that it will end up having to restructure debt
By Pan Pylas, The Associated Press
Greece launched a tirade against credit ratings agencies Monday after Moody's downgraded its debt grade further below junk status, warning the
bailed-out euro country might have to default on its massive borrowings.
http://jlne.ws/f0Zz7H
Banks tell Mervyn King they have changed
Reuters Finance News (EU) via Yahoo! UK And Ireland Finance
Britain's banks said on Saturday they had made their businesses safer, clashing with Bank of England Governor Mervyn King who warned about the risk
of a fresh financial crisis in an outspoken interview.
http://jlne.ws/hMLzFS
British Bankers' Association Statement On Remarks By The Bank Of England Governor
Press Release
Angela Knight, chief executive, British Bankers' Association, said: "We view the Governor with the highest respect, but in this instance there are a number of points with which we disagree...
http://jlne.ws/hq9bwV
Tidak ada komentar:
Posting Komentar