By January 2015, China will overtake the United States as the World's Largest Economy with China producing $17.6 trillion versus the US producing $17.4 trillion. Compare this to 2004 when China produced 1/3 that of the United States. Financial Times estimates China accounts for 16.5% of...

Last month, US Banking Regulators presented a new proposal for the collection, calculation and segregation of margin for bilateral derivatives. The new US proposals are quite different from their original 2011 proposal, in light of the BCBS/IOSCO issuance of their 2013 final policy framework on margin requirements...

Davis Polk’s Dodd Frank Progress Report Those insightful, intelligent people at Davis Polk continue to put out some of the most concise and readable information on Dodd Frank. 4th Anniversary Progress Report Enjoy their four year Anniversary Edition of their Dodd-Frank 4th Anniversary Progress Report...

ISDA 2014 CDS Credit Definitions On September 22, 2014, ISDA’s 2014 CDS Credit Definitions will become effective. This will be the first set of changes to the Credit Definitions since 2003, so it’s a pretty big deal. The key changes relate to Restructuring & Successor events.  Four key terms: Bank & Sovereign Subordinated or...

ISDA’s new Survey of Issues & Trends in the End User Community offers interesting insights into Swap Execution Facilities and End Users. Respondents point to fragmentation along geographical lines due to regulatory ambiguities in cross-border transactions. The survey’s respondents were asset managers and non-financial corporate: with a total of 125 respondents 89%...

6 KEY BANKS SIGNED UP FOR GLOBAL KYS REGISTRY Swift, the global messaging system, has entered into a memorandum of understanding with six key banks (Bank of America Merrill Lynch, Citibank, Commerzbank, JPMorgan, Societe Generale & Standard Chartered) to develop Swift’s KYC (Know Your Customer) Registry. The KYC Registry...

THERE ARE TWO TYPES OF PEOPLE IN THE WORLD Option buyers and option sellers.  After many years in the options markets, this is my observation.  Let me explain by introducing two dear friends: Betty and Samantha. BETTY Betty is always on time for everything. At street corners, Betty...