Basel Committee on Banking Supervision (BCBS)
CLS: the 10-year-old man in the middle
Ten years on from launch, CLS has come to occupy a unique and systemically important position in the global FX market. In the first of a two-part series, chairman Gerard Hartsink talks to Kathy Alys about CLS’s highs and lows in a decade as the market’s …
Concerns raised over Basel settlement risk guidance as consultation closes
The revised guidance on managing settlement risk could distort the FX market if implemented inconsistently, but should ultimately lead to greater use of CLS, say market participants
Stressed VAR will hit FX options, dealers warn
Certain forex options and exotics penalised by Basel 2.5, including emerging market currencies and double no-touches
Basel settlement risk guidance puts new demands on forex market
Governance, replacement cost risk, liquidity risk, operational risk and legal risk are among the issues FX banks must address, according to newly released Basel Committee guidance
Relief for dealers as Basel reins in capital for cleared trades
Basel Committee addresses long-standing complaints over default fund exposures and client clearing
FX market a challenge for CCPs, says New York Fed official
Central counterparties might struggle to implement clearing solutions for the FX market, says Jeanmarie Davis
New CPSS/Basel guidance on FX risk management to be published soon
A new consultation paper on risk management practices in the FX market will be released in the third quarter – and may be published as early as this month
Diverse netting approaches create OTC headache
A lack of legal statutes over netting in several Asian countries means OTC trades could become prohibitively expensive in a post-Basel III world, potentially pushing international banks out of some markets in the region
Regulators leave door open for FX exemption from margin rules
A senior group of regulators has recognised the possible case for an exemption from margin rules for non-cleared FX swaps and forwards - but possibly not those of longer maturities
WGMR margin rules borrow heavily from US proposals
Working group publishes proposed margin rules for uncleared trades – bringing global rules in line with an earlier US proposal
Banks hope for CCP capital concessions at Basel meeting
Banks and CCPs are pressing for changes to method of calculating default fund capital
Corporate backlash on costs of regulation continues
Banks will not be able to avoid passing on the hefty costs of regulatory reform to their buy-side clients, argued participants at the ACI UK’s annual square mile debate
Spotlight on: Damian Glendinning, Lenovo
The Chinese PC manufacturer’s group treasurer talks to Joel Clark about his role in setting up a global treasury function when Lenovo bought IBM’s PC business in 2005, and explains his belief that FX risk management should be kept as simple and…
Basel guidance on settlement risk delayed until June
Updated guidance on FX settlement risk from Basel Committee and CPSS was originally due by end of 2011, but now has an expanded remit
Spotlight on: Daniel Wong, British American Tobacco
The tobacco manufacturer’s global dealing room manager talks to Miriam Siers about the firm’s FX hedging programme, and how recent market volatility has driven changes to its currency risk management
Corporates fall on tough times
The recent volatility in foreign exchange markets has caused uncertainty for corporate treasurers and led to some changes in their strategies. How are banks helping corporates to tackle the current challenges and the increased costs that will result from…
FX Invest: US margin proposals could lock down $2 trillion in assets
Requirement for banks to post initial margin when trading with each other will result in huge amounts of liquid assets being locked down, according to analysis by one US prudential regulator
Basel III already raising costs for long-dated FX, argue corporates
Panellists at ACT annual conference express concerns about the knock-on effects of Basel III and OTC clearing rules
CLS welcomes new Basel working group on FX settlement risk
Work between central banks and supervisors that was halted at the onset of the financial crisis is now set to continue
US Fed’s Tarullo stresses importance of robust CCPs
Well-managed central counterparties (CCPs) are key to handling counterparty credit risk, according to Daniel Tarullo, a governor at the Federal Reserve Board in Washington, DC.
Capital rules for CCP exposures could make clearing costs punitive, dealers conclude
Clearing of over-the-counter derivatives could become punitively expensive if a proposal by the Basel Committee on Banking Supervision to increase capital held against exposures to central counterparties (CCPs) is not watered down, according to dealers.
Basel Committee tweaks counterparty risk rules
Basel Committee changes CVA methodology and releases consultation paper on CCP default fund charges
Banks look to securitisation of counterparty credit risk
A number of banks are considering securitisations of their counterparty credit exposures, as they look to get their balance sheets in shape ahead of new Basel capital charges.
British bankers lobby Banking Commission
British Bankers’ Association chief executive Angela Knight warns against breaking up banks; argues Basel III does not need to be buffered by national measures