Trading

A new app marketplace for OTC derivatives that is low cost and regulatory compliant is nearly at hand, but are financial institutions and derivatives users ready for this innovative concept? DerivSource's Julia Schieffer talks to DerivaTrust founders and market participants about this new ‘app swarm’ for trading OTC derivatives.

The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of an in-depth discussion and analysis of the impact of electronic execution requirements on over-the-counter (OTC) derivatives markets that were mandated by the Dodd-Frank Act. 

The paper, “Costs and Benefits of Mandatory Electronic Execution Requirements for Interest Rate Products,” was developed by ISDA staff and consultants in conjunction with NERA Economic Consulting, which assisted with research and analysis.

Press Release from International Organization of Securities Commissions

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its Final Report on Regulatory Issues Raised by the Impact of Technological Changes on Market Integrity and Efficiency, containing Recommendations aimed at promoting market integrity and efficiency and to mitigate the risks posed to the financial system by the latest technological developments including high frequency and algorithmic trading.

The Association of Corporate Treasurers (ACT), in a joint letter to Michel Barnier, Commissioner responsible for Internal Market and Services at the European Commission, has highlighted the danger that proposed financial markets legislation fails to constrain the trend towards concentration across the derivative trading and clearing landscape in Europe. The signatories to the letter urge the Commission to introduce explicit and detailed open access requirements within the proposed European Markets and Infrastructure Regulation.

- Only 8% of those polled consider their standardization and IT support adequate to meet their needs

Open Link Financial, Inc. (OpenLink), a leading provider of energy, commodities, trading, and risk management (ETRM/CTRM) solutions, which support the entire transaction lifecycle, has released survey results from a webinar conducted with Accenture, the global management consulting, technology services and outsourcing company.

    * Financial industry displays wide resistance to MiFID II
    * Universal approach to enhance transparency in all markets deemed unsuitable, say regulators, market participants and other financial professionals
    * MiFID proposals deemed too broad in scope

ESMA publishes a consultation paper (ESMA/2011/224) today setting out its proposals for detailed guide- lines for trading platforms, investment firms and competent authorities to address challenges of a highly automated trading environment, of which high frequency trading (HFT) is an important part. The guide- lines seek to clarify the obligations of trading platforms and investment firms under the existing EU legis- lative framework.

New EU legislation designed to regulate the trade in derivatives - widely believed to have contributed to the global financial crisis - moved a step closer on Tuesday with a vote by Parliament's Economic Affairs Committee.