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Swaps leaders fear aggregated rule impact 

April 23, 2015

International Financing Review

A deluge of regulatory changes aimed at reducing systemic risk and ending too-big-to-fail across financial markets has left buy and sell-side participants struggling to make business decisions as they digest the impact of the crippling capital regime and a slew of corporate governance and conduct changes.

Speaking on a panel at ISDA’s AGM in Montreal today, fixed income business heads called for greater clarity over new rules as they prepare for implementation of additional requirements that are set to take effect over the coming years.

“Although we’re coming towards the end of the rule enactment process, we’re only 50% through implementation and we won’t be through with the changes until 2020,” said Jonathan Hunter, global head of fixed income and currencies at RBC.

“We’re not actually seeing as much fragmentation as we might expect given the magnitude of the changes, but the fragmentation we have seen is about the cost piece and it’s making for tough decisions that might result in more fragmentation further down the road,” said Hunter.

Read more: IFR

 
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