Regulators in Australia are assessing whether to require clearing of over-the-counter derivatives, but market participants are already clearing such products. "We have a market structure developing without the mandate in place," said Peter Connor, head of Asian-Pacific market clearing at Deutsche Bank. "The majority of major derivatives users are well advanced in their clearing programmes, and overall the number of derivatives being cleared is increasing all the time, albeit via indirect clearing into offshore [central counterparties]."
In November, the China Securities Regulatory Commission started cracking down on the market for initial public offerings, prompting applicants to decrease from more than 800 to 666. Bank of Dalian and China National Building Material have dropped their IPO plans amid increased scrutiny.
Investors offered the Bank of England more than £500 million worth of investment-grade corporate bonds Tuesday, setting a record high, according to central bank data. Investors' risk appetite has taken a hit because of Europe's sovereign-debt crisis. The central bank said it bought more than £100 million in the bonds investors offered.
Axel Weber and Mario Draghi, policymakers at the European Central Bank, said the bank's programme for purchasing government bonds should be ended quickly, warning the scheme could threaten the central bank's price-stability goal. "Monetary policy has taken new paths in the wake of the crisis," Weber said. "I am critical of this because of the risks to policy stability."
Lehman Brothers' collapse will no longer be reflected starting in mid-September in many value-at-risk models, which banks use to calculate acceptable risk-taking. If banks start taking changes, markets could experience an increase in volatility and trading volumes. If not, it will indicate that banks are not simply relying on VAR models. "I think this will be a good test of banks' risk-management areas," said Peter Rothwell, senior manager in KPMG's group for financial risk management.