Monday, November 28, 2011

European Parliament Restricts Short Selling and Use of Credit Default Swaps

Author: David Schwartz J.D. CPA
In an effort to address regulatory fragmentation in short selling regulations throughout the EU, The European Parliament has adopted a regulation to harmonize the rules on short selling and credit default swaps.  Regulation (2010) 0482 (the "Regulation") is limited in scope and imposes restrictions on short selling and credit default swaps to prevent a disorderly decline in the price of a financial instrument.  The Regulation does not impose other types of restrictions such as position limits or restrictions on products, however.
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Friday, November 25, 2011

SEC Chairman on the Challenges of Regulating Derivatives

Author: David Schwartz J.D. CPA
In a dialog at the Managed Funds Association Outlook 2011 seminar held in October, SEC Chairman Mary Schapiro commented on the international and domestic challenges regulators face in coordinating the regulation of derivatives. From this dialog we can take away some nuggets of assurance that the process of regulating OTC derivatives is being thoughtfully considered, efforts are being made to coordinate both domestically and internationally, and that the implementation process will contain few surprises. 
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Wednesday, November 23, 2011

Draft Volcker Rule Prompts Buyers' Remorse

Author: David Schwartz J.D. CPA

In a strongly worded letter to Federal Reserve Chair Ben Bernanke, Rep. Maurice Hinchey (D-NY), Rep. Peter Welch (D-VT), and 15 other House members urged the Fed and other federal regulators to reject the current draft of the Volcker Rule regulations and replace them with stronger language to prohibit commercial banks from engaging in investment activities.  

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Tuesday, November 22, 2011

Basel Committee Issues FAQ on Counterparty Credit Risk Rules

Author: David Schwartz J.D. CPA
The Basel Committee on Banking Supervision has issued a Frequently Asked Questions document providing technical elaboration on its counterparty credit risk rules, published in June. This FAQ document questions and technical interpretations grouped according to the relevant paragraphs of the rules, in particular, default counterparty credit risk charge, and the credit valuation adjustment (CVA) capital charge, and asset value correlations.
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Saturday, November 19, 2011

ISS Issues Policy Updates for the 2012 Proxy Season

Author: David Schwartz J.D. CPA
Institutional Shareholder Services Inc. (ISS) has published the 2012 updates to its US and international corporate governance policies. These guidelines are applicable to shareholder meetings held on or after February 1, 2012.  Given the attention regulators and legislators have taken in corporate governance issues as of late, the new ISS guidelines for US companies include changes in several important areas.
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