Recollecting some of the scandals in the Investment banking space from the The Barclays Saga and Libor , LIBOR Manipulation : ny thing for you Big Boyz , JP Morgan : Jamie Dimon Testimony and the series is endless ..I believe the quotes of the maverick author holds true :
- The main difference between government bailouts and smoking is that in some rare cases the statement “This is my last cigarette “holds true
- The difference between banks and Mafia: banks have better legal regulatory expertise,but Mafia understands the public opinion. Or you can say”Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world” Continue reading “Banking Scandals”
“The RBI and CCIL have expressed reservations and said they would be reluctant to apply for registration under Esma.”
India is “reluctant” to apply for third-country equivalence for the Clearing Corporation of India (CCIL) from the European Commission (EC), while it is also planning to mandate the central clearing of rupee foreign exchange derivatives, a scenario that could potentially force European banks to exit the most profitable part of their derivatives business in the country.
On June 15, the European Securities and Markets Authority (Esma) is due to provide advice for the EC over whether India’s central counterparty (CCP) will be able to clear trades for European banks on July 15. Currently there is no framework within European Market Infrastructure Regulation (Emir) to enable clearing from non-equivalent CCPs. Continue reading “The OTC Clearing and India’s stand under ESMA.”
Have done a series of post on the US regulations Dodd Frank time now to share some thoughts on the EUROPE region.
The “European Market Infrastructure Regulation,” known as EMIR, was adopted on July 4, 2012, as the Regulation on OTC Derivatives, Central Counterparties and Trade Repositories (EU 648/2012), and took effect in all EU Member States on August 16, 2012. As an EU Regulation, EMIR is effective in EU Member States without the need for national regulations or legislation.
The EMIR regulatory framework is made up of Regulation EU 648/2012 (the “Regulation”) and several European Commission Implementing Regulations and Delegated Regulations which set out technical standards addressing matters of detail under the Regulation. The Implementing Regulations and Delegated Regulations were published in the Official Journal of the European Union on February 23, 2013, and became effective on March 15, 2013. Continue reading “OTC Derivatives Regulations – Focus Europe”
Single Dealer platform a financial forum asked a very logical question to CFTC Has CFTC given too much power to SEFs ?
Last week the CFTC passed the key rules that will govern how OTC derivatives will trade under the new Dodd-Frank regulatory framework.
By so doing, the CFTC has in effect devolved/transferred many important decisions regarding ‘where, and when’ swaps will trade over to the new market infrastructure and trading venues themselves, but will this give too much power to new trading venues?
One of the major rules that was passed, govern when a swap is ‘made available to trade’, or (MAT). This rule will determine which swaps are required to trade on Swap Execution Facilities (SEFs) or Designated Contract Markets (DCM). Continue reading “SEF Swap Execution Facilities or SEFbitrage”
Peter Lynch work in the financial market cannot be ignored. Sharing some of his thoughts from famous book “Beating the Street” .
- When the operas outnumber the football games three to zero, you know there is something wrong with your life.
- Gentleman who prefers bonds don’t know what they are missing.
- Never invest in any idea you can’t illustrate with a crayon.
- You can’t see the future through a rear view mirror
- There’s no point paying Yo-Yo Ma to play a radio.
- As long as you’re picking a fund, you might as well pick a good one.
- The extravagance of any corporate office is directly proportional to management’s reluctance to reward the shareholders.
- When yield of a long term bonds exceed the dividend yield of the S&P 500 by 6 % or more sell your stock and buy bonds. Continue reading “Why Beating the Street was easy for Peter Lynch”