Foreign exchange

LCH.Clearnet bid sparks conflict-of-interest debate

A proposal by a consortium of major derivatives dealers to acquire London-based clearing house LCH.Clearnet has led to suggestions that banks becoming intimately involved in the clearing process could present a conflict of interest.

Trichet: Eurozone CCP will help improve oversight

European Central Bank president Jean-Claude Trichet backed a central counterparty (CCP) for clearing credit default swap (CDS) trades in the eurozone today, in a speech that also called for banker compensation to be linked to avoiding excessive leverage.

More MCAs needed to meet equity derivatives targets

Participants in the equity derivatives market say a significant amount of work remains to be done on standardising documentation before it can meet regulators' electronic processing targets for over-the-counter trades.

More ARS writedowns still to come

At least 184 auction-rate securities (ARS) holders are continuing to mark their notes to par almost a year on from the implosion of the $330 billion market - meaning further writedowns are inevitable, a new report has concluded.

US Wrap: Mid-week freeze

With tumbling equity markets pushing the S&P index down 4%, yesterday turned out to be the right day for no issuance in the US market. Despite continued volatility, the past week has seen reverse convertibles making a comeback: the poster child of US…

SEC charges Stanford with fraud

The US Securities and Exchange Commission (SEC) has charged R Allen Stanford with orchestrating a fraud of a "shocking magnitude" via his asset management and broker-dealer advisory companies under the Stanford Group name.

Crunch time for Solvency II

The top European Union institutions are embroiled in trilateral negotiations in Brussels to agree on a draft text of the Solvency II insurance directive before the April 2 deadline.

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