FIA’s Eighth SEF Tracker Released (Dec. 2, 2014)
WASHINGTON, D.C., Dec. 2, 2014—FIA today published the eighth issue of FIA SEF Tracker, a periodic report on trading activity taking place on swap execution facilities. Trading of credit default swaps rose dramatically in October as new series were rolled out in the benchmark CDX and iTraxx indices.
FIA Issues Fourth Version of Guide to Customer Fund Protections (Nov. 25, 2014)
FIA today issued an updated version of its guide to the rules and regulations relating to customer fund protections in the U.S. The guide, which was first issued in February 2012, provides futures commission merchants and customers with easy-to-use information about the relevant provisions of the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission.
FIA Elects Two New Board Members (Nov. 21, 2014)
FIA today announced the election of two new members to its board of directors: Tom Kadlec, president of ADM Investor Services, and George Simonetti, managing director and head of Markets Clearing and Futures Execution in Wells Fargo Securities’ Markets Division. “I’m pleased to welcome Tom Kadlec and George Simonetti to FIA’s board,” said Walt Lukken, president and CEO of FIA. “Their addition contributes to the diversity of talent represented on our board, and I’m looking forward to working with them as we continue to expand our service to our industry.” A full list of FIA’s board members is available here.
FIA Global Requests Segregated Margin Be Excluded from Basel III Capital Requirements (Nov. 20, 2014)
FIA Global sent a letter to the Basel Committee on Banking Supervision yesterday urging the committee to consider how segregated margin is treated in the leverage calculations that determine bank capital requirements. FIA Global was joined on the letter by two other global trade associations—the World Federation of Exchanges and CCP12—as well as four global central clearing parties in their own rights: ICE, CME Group, LCH Clearnet Group, and Eurex Group.
This letter sets forth the reasons why—in the context of a bank exposure created by a cleared derivatives transaction—the Basel III leverage ratio should recognize the exposure-reducing effect of margin that is segregated, because segregated margin cannot be used to increase the bank’s leverage. The Global Trade Associations and CCPs are deeply concerned about the failure of the leverage ratio to recognize the exposure-reducing effect of segregated margin in the limited context of centrally cleared derivatives transactions. If not clarified or amended, the failure of the leverage ratio to recognize the exposure-reducing effect of segregated margin—compounded in the case of such margin received as cash—will likely have seriously negative effects on cleared derivatives markets and market participants, including end users.
FIA Announces General Counsel Barbara Wierzynski to Depart Role at End of 2014 (Oct. 31, 2014)
Deputy General Counsel Allison Lurton Will Begin Serving as General Counsel in January 2015
WASHINGTON, D.C., Oct. 31, 2014—Walt Lukken, President and CEO of FIA, announced today that after 20 years as FIA’s general counsel, Barbara Wierzynski has decided to take leave of this role at the end of 2014. FIA also announced the appointment of Allison Lurton as General Counsel, effective Jan. 1, 2015.