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Regulators put indemnification costs in spotlight
trueThe cost of indemnification — insurance against counterparty default — might have to be carried on bank balance sheets under possible domestic and international regulations, and that could spur asset owners to make changes in their securities lending programs.
2 Toronto professors win Markowitz prize
trueJohn C. Hull and Alan D. White — both of the Joseph L. Rotman School of Management, University of Toronto — were named winners of the $10,000 Harry M. Markowitz Award prize, according to a joint statement by New Frontier Advisors and the Journal of Investment Management.
BNY Mellon closes U.S. derivatives clearing business
trueBank of New York Mellon closing its U.S. derivatives clearing business.
Obama names CFTC chairman nominee
trueTimothy Massad, the Treasury Department official responsible for overseeing the U.S. rescue of banks and automakers after the credit crisis, will be nominated to head the Commodity Futures Trading Commission.
Illinois SURS sues global banks for monopolizing CDS markets
trueIllinois State Universities Retirement System, Champaign, accused J.P. Morgan Chase, Goldman Sachs, Bank of America, and 11 other global banking institutions and dealer groups for monopolizing the credit default swap markets, inflating transaction costs and obstructing formation of alternative CDS platforms, according to a lawsuit filed in U.S. District Court in New York.
Swaps exchange's new COO was co-CEO of eSecLending
trueKaren O'Connor was named COO at swaps exchange trueEX.
AlphaMetrix closing down funds of funds
trueAlphaMetrix Group announced it will shut down the funds of funds it manages using hedge/managed futures funds running trading strategies on its investment platform on Thursday.
AlphaMetrix ordered to repay managers on its managed account platform
trueThe National Futures Association ordered AlphaMetrix Group to pay $600,000 of management and incentive fees owed to some of the 90 managed futures funds, commodity trading advisers and hedge funds on its managed account platform by Nov. 1.
Communication key to OTC derivatives rules changes, report states
trueEarly and comprehensive consultation among regulators is key to any cross-border changes in OTC derivatives rules, according to a report by regulators in the U.S., European Union, Japan and five other countries, along with provincial authorities in Ontario and Quebec.
Derivatives tax proposal could have dire consequences
trueA draft proposal in Congress to change the taxation of financial products could affect pension funds and other tax-exempt institutional investors.
Asset owners, managers are sort of ready for new swaps rules
trueInstitutional investors and money managers say they are ready — more or less — for regulations on over-the-counter derivatives that become effective Sept. 9.
Shock awaits unprepared, thanks to Dodd-Frank
trueOn Sept. 9, some $2 trillion in corporate defined benefit pension plan assets, affecting approximately 20 million plan participants, will be subject to new regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Yet many plan sponsors are either ill-prepared or worse yet ...
NYSE Euronext to take over administration of LIBOR
trueBritain will hand over administration of the London interbank offered rate to the operator of the New York Stock Exchange as regulators try to revive confidence in the scandal-hit benchmark.
Colorado Fire & Police creates managed futures allocation, pledges $49 million to alts
trueColorado Fire & Police Pension Association, Greenwood Village, approved a new asset allocation that includes a new 5% allocation to managed futures strategies and committed a total of $49 million to three alternatives managers.
Miami Beach pension fund wins shareholder suit over currency derivatives
trueFibria Celulose agreed to pay shareholders $37.5 million to settle a lawsuit brought by the City of Miami Beach (Fla.) Pension Fund for Firefighters and Police Officers over $2.13 billion of currency-derivative losses in 2008, according to a court filing.