Benefits of OTC derivatives reforms outweigh costs, global regulators say

James Langton Regulatory reforms to the over-the-counter (OTC) derivatives market will eventually add an estimated 0.12% to GDP per year, according to a new report. The Macroeconomic Assessment Group on Derivatives (MAGD), which was set up by a group of global financial regulators, published a report Monday that aims to estimate the macroeconomic effects of OTC derivatives reforms. CSA delays margin requirements for OTC derivatives Related news Share this article and your comments with peers on social media According to the report, the cost of various reform measures — including mandatory central clearing of standardized OTC derivatives, margin requirements for non-centrally cleared OTC derivatives, and, bank capital requirements for derivatives-related exposures — represents an economic cost of about 0.04% of GDP per year, due to financial institutions passing on the expense of holding more capital and collateral to the broader economy. However, it also estimates the economic benefits of avoiding financial crises to be worth 0.16% of GDP per year; resulting in net benefits of 0.12% of GDP per year. “These are estimates of the long-run consequences of the reforms, which are expected to apply once they have been fully implemented and had their full economic effects,” it notes. Indeed, the report examines three possible scenarios, based on the fact that it believes the long-run costs and benefits will depend on how the reforms interact with derivatives portfolios and affect the structure of the derivatives market. The estimate of a 0.12% net benefit represents its central scenario. In a higher-cost scenario, it estimates the net benefit would be 0.09%, and in a lower-cost scenario, it suggests that the net benefit could be 0.13%. In order to maximize the net benefit of the reforms, it says, “regulators and market participants must work to make as many OTC derivatives as possible safely centrally clearable, with either a modest number of central counterparties (CCPs) or with central counterparties that interoperate. This should include efforts to harmonize the rules governing cross-border transactions, so that market participants have equal access to CCPs.” The MAGD was set up by the OTC Derivatives Coordination Group (ODCG) —comprised of the chairs of the Basel Committee on Banking Supervision, the Committee on the Global Financial System, the Committee on Payment and Settlement Systems, the Financial Stability Board, and the International Organization of Securities Commissions (IOSCO) — in order to assess the macroeconomic effects of OTC derivatives regulatory reforms. Keywords Over-the-counter securities and derivativesCompanies Basel Committee on Banking Supervision CSA seeks changes to derivatives rules Derivatives markets grow, ESMA reports Facebook LinkedIn Twitter read more

Schools Close on March 26

first_imgSchools Close on March 26 EducationMarch 22, 2012 RelatedSchools Close on March 26 RelatedSchools Close on March 26 FacebookTwitterWhatsAppEmail The Ministry of Education is advising that all schools must be closed on Monday, (March 26), as the majority of public schools will be used as polling stations for the Local Government Elections on that day. “Schools are however asked to ensure that arrangements are made to recover this additional day, so that the 190 days (per school year), stipulated by the Code of Regulations can be honoured,” says Acting Director for Communications in the Ministry of Education, Sheryl Bromfield. Chairman of the Electoral Commission of Jamaica (ECJ), Professor Errol Miller, had informed at a media briefing on March 14 at the ECJ’s Red Hills Road location that some 6,630 polling stations have been secured in 2,191 polling locations. Monday’s elections will allow for political representation in 228 divisions in the 63 constituencies islandwide. The current number of electors on the voters’ list is 1,648,036, the same number as the November 30, 2011 voters’ list used in last year’s General Election on Thursday (December 29). By Alecia Smith-Edwards, JIS Reporter RelatedSchools Close on March 26 Advertisementslast_img read more

Yourbrook launches three-month tidal prototype testing

first_imgYourbrook Energy Systems has begun testing its tidal power pump prototype in real sea conditions in Juskatla Narrows off Haida Gwaii, British Columbia, as announced at the beginning of this month.The company obtained the approval from the province of British Columbia and Haida First Nation to deploy the small-scale prototype for three months, and plans to set up a full-scale demonstration system once the prototype’s field testing is completed.Yourbrook Energy Systems aims to minimize the consumption of diesel-powered electricity, on which the residents of northern Haida Gwaii currently rely.Nathan Cullen, Member of Canadian Parliament for Skeena-Bulkley Valley, who was present at the system’s launch in Port Clements last week, said he will help the developer with accessing federal funding to advance the project, since the company “spent tonnes of their own money” to develop the technology, according to CFTK-TV.The project has so far been financed by the developer and the Canadian National Research Council’s IRAP programme.[mappress mapid=”934″]last_img read more

Lutheran West Moves to 6-2, Beats Up Oberlin 45-12

first_imgBy Mark PerezIt’s a new season for Lutheran West, head coach of the 6-2 (2-1) Longhorns declared to his team the week after their loss to Columbia.In their new season, they are 2-0 after their win against the Oberlin Phoenix, who are now 2-6 (0-3).“(Our new season) motivates us to beat more people and rack up more points after our two losses,” Longhorns’ running back Parker Watson said after the game. “I don’t think those should have happened, but we are bouncing back.”Watson ran for 168 yards and three touchdowns, two of which came in the first half that helped them start the second half off with a running clock as they led 45-12. “(The offensive line) helped me out a lot,” he said. “We’re all family, we’ll do it together, credit to them, and I love those guys… When I start going, I can’t stop.”Lutheran West leaned on him heavily in the first drive as he touched the ball four of their five plays before scoring the first touchdown from a three-yard run.Oberlin retaliated right after their next drive as the Phoenix’s Ravon Eisom scampered for a 25-yard touchdown run to tie the score 6-6. They did not score their 2-point conversion.Watson bounced right back with a four-yard touchdown and catching a 2-point conversion to make the score 14-6 after rushing for a 24-yard gain on the previous down.“(Watson) has had a great year all season long.” Lutheran West coach Frank Petroff said. “He’s a tough running back, experienced running back. He played a lot of football last year for us and he continues to do a great job.”“They muscled us on both sides of the ball,” Oberlin’s head coach Mike Akers said. “We couldn’t deal with their interior lines and they just dominated us. We just couldn’t do anything because of that.”Turnovers for the Phoenix was the problem for them and the drizzling rain on the field didn’t help their situation either.“Tonight, we just didn’t block up front and that was the cause of our turnovers,” Akers said.This game was also the start of their new quarterback Micah Jones-Smith replacing Azarie Hairston, who is playing wide receiver.“Our quarterback (Jones-Smith). This was his first game and I thought he did a nice job.” Akers said. “He handled snaps well, especially with a wet ball, he got it to the right people, he ran the ball well. He had a long run and had a nice screen pass for a touchdown.”Before the end of the first half, Oberlin was backed-up to their own 10 yard-line and threw the ball to his running back, Jones-Smith’s pass was tipped and was intercepted by junior David Busch and was returned for a touchdown.“We are very confident, but we know what lies ahead and we’ll need to get better this week to take on a tough Clearview team (next week),” Petroff said.Next week, Oberlin will face Brooklyn high school and Lutheran West will face Clearview high school at 7:00 p.m. Related TopicsLutheran WestOberlin Phoenix NEO HS Stafflast_img read more