The European Securities and Markets Authority ("ESMA") announced the launch of two centralized data projects: (i) the Instrument Reference Data Project, which will provide a central facility to collect instrument and trading data, calculate MiFIR transparency and liquidity thresholds, and offer database access to nationally competent authorities and financial market participants, and (ii) the Trade Repositories Project, which will provide a single access point for trade repositories data under EMIR.

In a blog post titled " An Elegant Answer to the Wrong Question (or an Incomplete One)," University of Houston finance professor Craig Pirrong discussed dealer exposure as described in a recent paper published by the Federal Reserve Bank of New York. The paper examined the effect of introducing a central clearing counterparty ("CCP") on the expected net exposures of dealers. In the paper, authors Rodney Garratt and Peter Zimmerman find that with a variety of network structures, clearing reduces netting efficiency and increases CCP risk exposures. The authors show that when the system relies on

The CFTC held its first Market Risk Advisory Committee ("MRAC") meeting. The committee addressed issues related to the current risk management techniques employed by derivatives clearing organizations ("DCOs") and the evolving structure of the derivatives markets, with particular attention to swap execution facilities ("SEFs"). The meeting was split up into two parts: (i) default management at CCPs and (ii) the market's response to the introduction of SEFs. As detailed in the Delta Strategy Group summary, the key takeaways were as follows: "Clearinghouse panelists said default management

The SEC brought an enforcement action against KBR Inc. ("KBR") for violating Exchange Act Rule 21F-17, which prohibits companies from impeding employees' whistleblowing. The SEC's charges were based on KBR's use of confidentiality agreements that threatened possible disciplinary action against any employee who disclosed information they learned while serving as a witness in an internal investigation. The enforcement action and accompanying press release make the SEC's message clear: companies that discourage whistleblowers from reporting possible violations of securities laws to outside

The New York Mercantile Exchange ("NYMEX") issued two separate disciplinary actions against Newedge USA LLC ("Newedge") and Sipi Metals Corporation ("Sipi") for violating Exchange Rule 538.H ("Documentation"). According to NYMEX, Newedge and Sipi both entered into an exchange for related positions ("EFRP") transactions that did not contain documentation of the related physical transactions, and therefore were not bona fide EFRP transactions. NYMEX ordered Newedge to pay a fine of $15,000 and fined Sipi $7,500. See: NYMEX Notice of Disciplinary Action against Newedge; NYMEX Notice of