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SEC Proposes Joint Rules with CFTC to Define Swap Related Terms
November 3, 2010--The Securities and Exchange Commission today voted unanimously to propose joint rules with the Commodity Futures Trading Commission (CFTC) that would further define a series of terms related to the security-based swaps market, including “swap dealer,” “security-based swap dealer,” “major swap participant,” “major security-based swap participant” and “eligible contract participant.”
The rules seek to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which among other things established a comprehensive framework for regulating the over-the counter swaps market.
SEC Chairman Mary L. Schapiro said, “Today’s proposals lay out objective criteria, but they are just a first step, as we seek public comment to help us appropriately address the market impacts and potential risks posed by these entities.”
The SEC is seeking public comment on the proposed rules for a period of 60 days following their publication in the Federal Register.
view fact sheet
Source: SEC.gov
MSCI Launches Micro Cap and All Cap Indices for Developed Markets
December 2, 2010--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, including indices, portfolio risk and performance analytics and corporate governance services, announced
today that it has launched the MSCI Micro Cap Indices for all Developed Markets countries and regions covered by
MSCI. MSCI is the first major index provider to offer consistent micro cap coverage across these markets.
The MSCI Micro Cap Indices add 4,862 new securities to the number covered by the MSCI Global Equity Indices, led
by constituents from Japan (1,318 securities) and the US (964 securities)1. The indices include companies with
market capitalizations as low as USD 29.5 million1.
In conjunction with the MSCI Micro Cap Indices, MSCI is also launching the MSCI All Cap Indices today, which aim to provide comprehensive coverage of all capitalization segments and approximately 99.8% of the Developed Markets equity universe. The MSCI All Cap Indices extend and complement the existing MSCI Investable Market Indices (IMI) which include large, mid and small cap companies.
Theodore Niggli, Managing Director and Head of MSCI Indices, said “With the launch of these new indices we now offer an effective alternative to existing domestic micro cap indices, and provide a deeper all cap equity opportunity set for Developed Markets, with large, mid, small and micro cap representation.”
Both the MSCI Micro Cap Indices and the MSCI All Cap Indices follow the principles of the MSCI Global Investable Market Indices Methodology and are constructed with a focus on data quality, and index transparency and consistency across all size segments and geographies.
MSCI’s extension of coverage into the micro cap segment demonstrates the company’s ongoing commitment to address the evolving needs of its clients, and represents yet another landmark in the company’s 40-year history of index development.
MSCI also announced today that it has extended its Frontier Markets universe to include small cap coverage. The new MSCI Frontier Markets Small Cap Indices cover 26 countries and 242 securities1.
Performance data for all the new indices will be available on www.msci.com at market close today, and will be included in the applicable end of day index products for MSCI index clients.
1 All index statistics cited use pro forma index data as of October 21, 2010.
Source: MSCI Inc.
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
Commissioner Michael V. Dunn
December 1, 2010--
Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act. Today’s meeting will address proposed rules regarding:
Core principles and other requirements for designated contract markets;
General regulations for derivatives clearing organizations;
Information management requirements for derivatives clearing organizations;
Reporting, recordkeeping and daily trading records requirements for swap dealers and major swap participants; and
The definition of “swap dealer,” “security-based swap dealer,” “major swap participant” and “eligible contract participant.
I will support publishing these proposed rules in their current form, but I am concerned that the rules addressing DCM core principles, as currently drafted, may be too prescriptive.
read more
Source: CFTC.gov
OCC Announces Total Contract Volume in November Increased 33%
December 1, 2010--The Options Clearing Corporation (OCC) announced today that total OCC volume reached 354,897,569 contracts in November. This represents a 33% percent increase over the November 2009 volume of 266,989,810 contracts. OCC year-to-date total volume is up 8% with 3,581,480,630 contracts, only 43,540,423 contracts away from last year's annual total.
As of the end of November, OCC's year-to-date cleared futures volume is 23,619,380, nearly double the 2009 annual total of 12,383,935 contracts.
Options: Exchange-listed options trading in the U.S for the month of November was up 33% from the previous year. Index options trading increased 5% over the previous November with 23,247,409 contracts. Equity options trading volume rose 35% compared to the same month last year with 328,797,894 contracts in November.
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Source: OCC
Volume Records Propel November Trading At CBOE Futures Exchange To All-Time High
December 1, 2010--The CBOE Futures Exchange, LLC (CFE) today announced that November 2010 was the most-active trading month in CFE history.
The record 751,481 contracts that changed hands during the month surpassed the previous high of 481,650 contracts in May 2010. November volume exceeded the 184,558 contracts traded during November 2009 and gained 57 percent from the 479,304 contracts that traded during October 2010. November marked the fourteenth consecutive month in which total volume registered an increase when comparing year-over-year trading activity.
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Source: CBOE
Fed reveals global extent of its backing
December 1, 2010-- Rivers of ink have been spilt on the crisis that gripped the world’s financial system between 2007 and 2009.
Wednesday’s huge release of data by the US Federal Reserve chronicles a similar story, but in numbers. A lot of numbers.
read more
Source: FT.com
Wikileaks puts focus on banks’ data security
December 1, 2010--The news that Wikileaks may be planning to release a trove of internal documents from a big US bank added to the list of woes facing an industry that still appears under attack from all sides.
Bank of America shares dropped 3 per cent on Tuesday on speculation that it will be the next high-profile target of Julian Assange’s whistle-blowing website.
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Source: FT.com
European banks took big slice of Fed aid
December 1, 2010--Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis, according to new data on the extraordinary efforts of the US authorities to save the global financial system.
The revelation of the scale of overseas lenders’ borrowing underlines the global nature of the turmoil and the crucial role of the Fed as the lender of last resort for the world’s banking sector.
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Source: FT.com
Turkey Soup Opening Statement of Commissioner Bart Chilton Before the Open Meeting on the Sixth Series of Proposed Rulemakings Under the Wall Street Reform and Consumer Protection Act
December 1, 2010--Thank you, Mr. Chairman. I hope that everyone had a good Thanksgiving. I was thinking of how my mother used to take what was left of the Thanksgiving turkey carcass and make it into a delicious turkey soup sometime later. As the carcass simmered, the meat that was left would fall off the bones and the aroma and the flavor were both terrific.
The flavor of what we’re doing here, I suppose, is just the opposite. We’re putting meat on the bones of this new law. ‘Course, we don’t want to wind up with a turkey when we’re done and I don’t think we will both because of the great work the staff is doing and the public input we’ve received.
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Source: CFTC.gov
Opening Statement, Public Meeting on Proposed Rules Under Dodd-Frank Act
December 1, 2010--Thank you all for joining us today for this important meeting regarding the implementation of the Dodd-Frank Act. Today’s meeting will address proposed rules regarding:
Core principles and other requirements for designated contract markets;
General regulations for derivatives clearing organizations;
Information management requirements for derivatives clearing organizations;
Reporting, recordkeeping and daily trading records requirements for swap dealers and major swap participants; and
The definition of “swap dealer,” “security-based swap dealer,” “major swap participant” and “eligible contract participant.
I will support publishing these proposed rules in their current form, but I am concerned that the rules addressing DCM core principles, as currently drafted, may be too prescriptive. If this rule was before us today as a final rule, I would have reservations voting for its release based on my firm belief that the CFTC should remain a principles based regulator, and not a prescriptive regulator. However, after meeting with our staff, it is my understanding that many of the provisions of the proposed DCM core principles are actually already being followed by industry or have become best practices over time. In essence, my understanding is that this proposed rule simply codifies what is already being done. It is my understanding that many in the industry desire the establishment of a safe harbor that will ensure that they are in fact meeting the intent of the core principle. However, I do not know this to be true and will look to the public comments on this proposed rule to guide my decision making process in regard to the final rule. Comments indicating that we are indeed merely codifying the best practices already in use and a safe harbor is needed for legal certainty, will influence my vote on a final rule.
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Source: CFTC.gov
