Lawmakers Call for Easing Rules for Banks’ Internal Swap Trades – Bloomberg
US regulators should consider freeing large banks from having to hold collateral against derivatives used to manage internal risks, top Republican and Democratic lawmakers on a key House panel said in a letter.
ISDA Review of Dodd-Frank Calls for Regulatory Harmonisation – Profit & Loss (free story)
Regulators in the US and other jurisdictions need to harmonise derivatives rules in order to prevent liquidity fragmentation, says the International Swaps and Derivatives Association (ISDA) in its review of the Dodd-Frank Act published this week.
Banks Slam Clearing For Some European Currencies – FOW (subscription) Deutsche Bank and Barclays have criticised plans to extend clearing obligations for interest rate swaps to the six currencies of the European Economic Area (EEA). The European Securities and Markets Authority (Esma) released late on Friday the banks’ responses to a recent consultation on the proposed extension of the IRS clearing obligations to Czech koruna, Danish krone, Hungarian forint, Swedish krona and Polish zloty.
Smaller Banks in Volcker Rule Exemption Letter ‘Stand-Off’ – Asia Risk (subscription)
While larger foreign banks caught by the Volcker rule have detailed compliance plans at the ready, smaller institutions are relying on the “totally outside the US” (Totus) exemption but counterpart international banks are refusing to sign representation letters causing a stand-off just before the deadline for implementation. The Volcker rule prohibits banks from conducting proprietary trading.
Dodd-Frank’s Job Isn’t Done – Bloomberg View
On July 21, 2010, President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, aimed at ensuring the financial system would never again bring the US to the brink of economic disaster. Five years later, the job remains far from done.
RBA Minutes: China Turmoil and Currency Complaints – Financial Times (subscription)
Imminent easing from the RBA doesn’t appear likely. Minutes of its July 7 meeting indicate the Reserve Bank of Australia sees an economy with below-trend growth but stable unemployment.
Regulation a Hurdle for Blockchain – FOW (subscription)
The deadline for responses to the European Securities and Markets Authority’s (Esma) call for evidence on virtual currencies and distributed ledgers passes this Tuesday, in the first move by the regulator to increase scrutiny of the technology.