Creditflux

Japanese regulator makes CLOs exempt from risk retention - if loans are appropriately originated
The Japan Financial Services Agency (FSA) has said that CLOs can sit outside the remits of its securitisation regulation, if investors in the country can provide ‘in-depth analysis’ showing the underlying assets were appropriately originated

European regulators lower Solvency II capital charges for private debt
The European Commission has amended Solvency II rules to make it easier for insurance companies to invest in private debt and private equity

CDS relative value traders shift their bets as Europe trades inside US
Credit derivative markets have hit a point of position cutting and resetting, with the iTraxx Europe index having dipped inside its US counterpart CDX IG for the first time since December even as the European Central Bank’s new funding programme underwhelmed financials traders

They said it: I dedicated eight years of my life to it - so yes!
European Banking Authority principal policy advisor Christian Moor is asked whether the creation of the Simple, Transparent & Standardised label has been worth the effort

Securitisation Regulation hits European ABS issuance
Issuance in traditional European ABS has been notably slow in the first two months of 2019 following the introduction of the new Securitisation Regulation.

Private credit body urges regulators to remove barriers
The Alternative Credit Council (ACC) is lobbying for policy makers to remove barriers in some EU countries that restrict the ability of non-bank lenders to operate

Initial margin relief falls short of industry calls
Reprieve for many smaller counterparties from a requirement to post initial margin (IM) on derivative trades looks likely, following a statement from regulators this week

US dollar three-month is focus point for benchmarks, finds Ice Libor survey
One-, three- and six-month US dollar and sterling are the focus points for Ice Benchmark Administration to seek agreement with banks, according to the results of IBA’s survey on uses of Libor

Isda extends German CDS protocol deadline beyond March index roll
The International Swaps & Derivatives Association (Isda) has extended the deadline for market participants to adhere to its German bank CDS protocol after it became clear a number of affected parties would not be signed up in time

US and UK sound post-Brexit derivatives regulatory accord
The US Commodity Futures Trading Commission (CFTC) and the Bank of England have issued a joint statement assuring derivative market participants of continued access to trading and clearing after the UK’s exit from the European Union

Dentons boosts derivatives practice in London with two partner
Dentons has added two partners to its derivatives practice in London

Esma grants no-deal Brexit recognition for UK central clearers
The European Securities and Markets Authority (Esma) has moved to avoid a derivatives market debacle by agreeing to recognise three UK-based central counterparties (CCPs) in the event of a no-deal Brexit

Behave yourselves: EBA policy advisor warns against misuse of securitisation rules
The European securitisation market has come a long way over the last decade, and the message from one policy advisor is clear – don’t do anything to mess it up.

DTCC appoints Deriv/Serv board chairman to replace Thompson
The Depository Trust & Clearing Corporation (DTCC) has appointed a replacement board chairman of its Deriv/Serv credit derivatives repository following the retirement of Larry Thompson in December

SEC proposal could strengthen BDCs’ power to purchase funds
The Securities and Exchanges Commission (SEC) has released proposals to allow regulated US funds, including listed funds, closed-end funds and business development companies (BDCs), to acquire shares of other regulated funds in excess of current limitations

CDS lives to bring more fights as it steers past Ziggo and Sears
Credit default swaps have navigated two big tests of their rules, holding up to scrutiny on Ziggo Bond Finance (ZBF) and Sears Roebuck Acceptance Corp (SRAC), despite warnings they could weaken the product

Isda sets 27 February deadline for German bank CDS protocol adherence
The International Swaps and Derivatives Association (Isda) has launched a protocol for German bank CDS, as the industry looks to adapt to a change in the country’s law regarding senior financial debt

CLO market holds breath as Japan risk retention looms
Risk retention compliant US CLOs could make a comeback after the Japan Financial Services Authority (JFSA) unveiled its proposed new risk retention framework, which could tie the hands of the world’s biggest buyers of US CLOs

Market welcomes Esma loosening of securitisation regs but questions remain
The European Securities and Markets Authority (ESMA)'s revision of the reporting templates that must be completed under the securitisation regulations addresses many of the concerns raised by market participants but leaves some points of difficulty, according to industry lawyers

Bank of England agrees post-Brexit recognition of UK central clearers with Esma
The Bank of England and the European Securities and Markets Authority (Esma) have agreed to continue to recognise central counterparties (CCPs) and the central securities depository (CSD) established in the United Kingdom in the event of a no-deal Brexit

CDS food fight as UNFI sues Goldman Sachs over SuperValu deal
United Natural Foods Inc (UNFI) has summoned Goldman Sachs to court, accusing the bank of bad faith in the way it handled the US retailer’s buyout of SuperValu last year, a transaction which caused the target firm’s CDS spread to bloat by over 200bp in one day

Isda seeks fallback spread vendor for derivatives
The International Swaps & Derivatives Association is seeking an independent service provider to calculate and publish adjustments to fallbacks it will use in interest rate benchmarks for its Isda definitions

CLO docs shed light on implementation of Securitisation Regulation
Market participants are beginning to get visibility on how European CLOs are handling the transparency obligation and the risk of fines under the European Securities & Markets Authority’s (Esma) Securitisation Regulation, according to a report on Creditflux’s sister publication Debtwire

Esma requests derivatives clearing reprieve for smaller counterparties as deadline looms
With time running out for market participants to comply with a 21 June deadline to start centrally clearing over-the-counter credit and interest rate derivatives, the European Securities and Markets Authority (Esma) has pleaded with national regulators to overlook the failure of smaller counterparties who may subsequently be absolved from the requirement in any case since thresholds are not yet finalised

Central counterparties need to improve after Nasdaq Clearing member default, says Isda
Derivative central counterparties (CCPs) must look to make a number of improvements to risk practices, the International Swaps and Derivatives Association has said in a paper that follows a clearing member default at Nasdaq Clearing in September