Philip Chua Business Blog

Posts Tagged ‘Derivatives’

Three years into the financial crisis, why haven’t complex derivatives been reined in?

THE tiredness exhibited by the local market on Wednesday proved to be a precursor of things to come as prices fell yesterday across-the-board. Weighed down by weakness in Hong Kong and by expectations of a soft Thursday for Wall Street, the Straits Times Index finished 17.24 points down at 2,913.25, with the broad market recording 256 falls versus 190 rises, excluding derivatives. In the previous … more

(SINGAPORE) Singapore Exchange will launch contracts for gold, coffee and fuel oil early next year and invest heavily to support high-tech trading, new chief executive Magnus Bocker said yesterday at a derivatives industry conference.
‘I think there is a great opportunity for Singapore and SGX to be more in the forefront of trading and clearing of energy products,’ Mr Bocker, who took over from Hs… more

A PUSH on the three banks in relatively thin volume initially helped send the Straits Times Index up 40 points to 2,785 yesterday but afternoon concerns triggered by a firming US dollar and the associated worry over how Wall Street might react brought the index down to 2,758.79 for a closing gain of just 13.75 points.
Excluding the STI components and derivatives, there were 215 falls versus 144 ri… more

A PUSH on the banks helped the Straits Times Index yesterday rise 14.22 points to 2,707.6 in a tepid session that saw the broad market record 163 rises against 218 falls excluding derivatives.
The softness was not overly surprising given that the index had already risen sharply on Monday ahead of the US rally which meant that it made sense for investors to sell into strength yesterday. Providing a… more

Reuters – Citigroup Inc is expected to be fined $600,000 by the Financial Industry Regulatory Authority over derivatives transactions that helped foreign clients avoid taxes on dividends, a source familiar with the matter said on Sunday.

Reuters – Central clearing of privately traded derivatives contracts won’t be enough to make the $600 trillion sector safe, while clearing of some bespoke trades may not be desirable, the Bank of International Settlements said.

Reuters – Lehman Brothers Holdings Inc can pursue claims on assets in a bankruptcy case expected to set a precedent for treatment of derivatives in complex investment products, a New York court said on Tuesday.

Reuters – Warren Buffett’s Berkshire Hathaway Inc posted its best quarter in nearly two years, as recovering stock markets boosted the value of its equity investments and derivatives bets.

Reuters – U.S. financial regulators would gain the power to restrict holdings of over-the-counter derivatives under legislation to be crafted in the coming months, the chairmen of two House of Representatives committees said on Thursday.