Should central banks review

Central banks Regulation in derivatives Markets

On 13 February 2012 the Monetary Authority of Singapore ("MAS") issued a consultation paper on its proposals to expand the scope of the Securities and Futures Act ("SFA") to regulate over the counter ("OTC") derivatives. This move is pursuant to MAS' July 2011 announcement that it would meet the objectives set by the G20 committee and recommendations made by the Financial Stability Board ("FSB"), following the global financial crisis, to improve the regulation and supervision of OTC derivatives and strengthen the international financial regulatory system.

After the Lehman crisis of September 2008 the G20 summit was held in 2009 where the financial ministers from the G20 group proposed a central clearing system to minimize the counterparty risks in the OTC derivatives market. A central counterparty ("CCP") is a clearing facility that provides a service by which a party to a transaction substitutes, through novation or otherwise, the credit of a clearing facility for the credit of its counterparty to the transaction. CCPs allow for multilateral netting of transactions and thus are argued to reduce counterparty credit risk. Singapore is one of the major derivatives markets in Asia attracting trade of about US$9.8 trillion a year, mainly relating to interest rates, foreign exchange and oil. Currently the Singapore Exchange ("SGX") is the only clearing house in Singapore for OTC derivatives and some banks have their own in-house e-trading platform for OTC products. The proposals have generally been welcomed by institutions who dominate trading of OTC derivatives and will likely have a significant impact on the OTC derivatives market when passed as legislation.

You might also like
Bank Regulation and Global Risk
Bank Regulation and Global Risk
Markets 2014: Will Euro-Zone Banks Pass the Test?
Markets 2014: Will Euro-Zone Banks Pass the Test?
OOFIT INC. OOFIT Phone Case Design with Grid of Different Sizes for Apple iPhone 5 5s 5g
Wireless (OOFIT INC.)
  • Snap-on back case with full access to all ports, buttons, cameras and sensors
  • Stylish protection, Lightweight and durable case suitable for gifts
  • Unique triangle camera hole on the back makes your iphone outstanding
  • Made of high quality material with excellent bearing pressure
  • 100% brand new together with unique design and perfect fit for your iPhone

NAB Lifts Cash Profit 7% To $1.6 Billion But Revenue Is Down  — Business Insider Australia
This was partially offset by higher lending balances and a broadly stable customer margin.

Sharp Sharp EL-1197PIII Heavy Duty Color Printing Calculator with Clock and Calendar
CE (Sharp)
  • 12-Digit display
  • 2 color printing. Calendar/ Clock and Time function
  • Grand total
  • AC powered.
COWLENDS Cowlends CE-1 Dealer Display Pack (6 pairs) Fits all 04-08 Ford F-150 and Lincoln Mark LT trucks. You save 21% compared to individual purchase price. Cowl retainer pins not included, please see listing for item Cowlends CE-2.
Automotive Parts and Accessories (COWLENDS)
  • Countertop Display Pack comes pre-filled with 6 pairs of our CE-1 Cowlends. FREE SHIPPING!
  • Dimensions- 1.5 high tray with a 4 high display card at rear of box. 7 wide and 5.25 front to back
  • When purchased in the Display Pack the cost per pair is only $11.33 compared to out list price of $14.49. This leaves you plenty of room to mark up and still maintain...
  • The locking tabs line up perfectly with existing holes in cowling making for easy installation in under 5 minutes using just a slot screwdriver, and best of all...
  • 90% of customers visiting our website report that the first places they looked for these were at their local Ford dealer, auto parts stores, and salvage yards. Here...
Myob Us Inc MYOB Business Essentials Pro 2.0
Software (Myob Us Inc)
  • Customer Appointment Manager finds available appointments by employee, time period, or both
  • Add or locate existing customers, forecast sales and expenses by category and project your break-even point
  • Create flexible item pricing, price by margin, markup or gross profit
  • Stay organized with strong and flexible inventory management
  • Advanced Time Billing based on client, employee, or activity rates -- track write-offs, carry-overs and non-billable time

Popular Q&A

Why do the American people allow a private bank to print their money and regulate their economic market

They don't. #2 Actually they do. It's called the Federal Reserve, and they ARE a private bank.

Why is it that when central banks tighten credit, they will potentially increase market volatility? - Quora

Intuitively, a tight credit policy (increase in interest rates, rendering loans more expensive) by the central bank can have two opposing effects:
Inflow of Foreign Capital - The higher interest rates are a positive signal to foreign investors, who invest their money in the hopes of getting higher returns. This increased demand would tend to raise stock prices.
Reducing Business Investment - As higher interest rates make loans more expensive for businesses, the level of economic activity decreases. Not only would this induce negative sentiments in the market, but also affect the earnings …

Related Posts