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RiskNews Update - week ending 1/6/2001
http://www.risknews.net
News for derivatives and risk management professionals
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Dear Subscriber,

Welcome to RiskNews Update!

The top news of the week came as the Basel Committee on Banking Supervision received widespread criticism from banks, trade associations and academics regarding its proposed implementation of Basel II, the new capital accord for internationally active banks.

The International Swaps and Derivatives Association criticised the proposed introduction of rigid capital floors. The leading swaps trade body also criticised the internal ratings multiplier and controversial "w" charge on credit derivatives, and was supported by the US' Bond Markets Association (BMA). The BMA also said the proposals would increase regulatory capital costs, and impair liquidity in repo, securities lending and margin lending transactions. US investment bank Merrill Lynch, meanwhile, said it is concerned the accord could adversely affect banks that concentrate on trading activities rather than lending. Multilateral lending body, the IMF, called for the new proposals to be applied to all banks in all countries and not just internationally active institutions, while others raised grave concerns that the proposals would have a significant detrimental impact on loans to emerging markets.

RiskNews (www.risknews.net) has produced eight stories on the subject of Basel responses and will continue to investigate replies in the coming weeks.

Christopher Jeffery
Editor, RiskNews

Tel: 44 (0)20 7484 9880
E-mail:cjeffery@riskwaters.com
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LESS THAN 14 DAYS TO BOOK FOR ? Risk 2001 USA (Boston, 12 & 13 June 2001)

The flagship event produced by Risk magazine should prove to be the definitive congress for risk management and derivatives professionals, and will focus heavily on the impact of the new Basel capital accord proposals. Other highlights will include an interactive panel debate on the future of risk management with keynotes from professor Robert Shiller, Yale University, and Erwin Zimmermann, head of Swiss Re New Markets. For a full listing of topics/speakers and all booking details please visit:

http://www.risk-conferences.com/risk2001usa?caller=risknews_update
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RiskNews Update - 1/6/01

Headlines/Technology and Exchanges/People/Events

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Headlines - 1/6/2001
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1 June - Academics have called for an extension to the deadline for responses to the proposed new Basel Capital adequacy accord, after concerns were raised about its effect on developing countries

1 June - In response to the new Basel capital adequacy proposals, president of the Infinity business unit at SunGard Trading and Risk Systems, David Rowe, said that regulatory capital rules should pay greater attention to the impact of diversification effects used in good portfolio management for credit risk

1 June - Banks that derive their income from trading as opposed to loan-making could be disproportionately affected by Basel's operational risk charge and may not significantly benefit from the credit risk proposals, according to US investment bank Merrill Lynch

1 June - In its official response to Basel II, the Bond Market Association, the US trade association for fixed-income securities dealers and underwriters, has expressed significant concern that the new proposals will increase regulatory capital costs, as well as impair liquidity, in repo, securities lending and margin lending transactions

1 June - The proposed new Basel Capital Accord should apply to all banks in all countries and not just internationally active banks, according to the International Monetary Fund

1 June - Multilateral lending organisation, Asian Development Bank, has called for the Basel Committee on banking Supervision to allow multilateral development banks to act as eligible guarantors for credit protection on complementary financial schemes

1 June - The International Swaps and Derivatives Association has criticised areas of the new Basel Capital Accord in its formal response to the Basel Committee's consultation paper, including capital floors, internal ratings multipliers and the credit risk 'w' charge

1 June - French trading and risk management solutions provider Ubitrade has opened its first office in North America through the establishment of a Chicago office

1 June - The new electricity trading arrangements - the wholesale electricity trading market that replaced the electricity pool in England and Wales on March 27 - is not expected to have a major impact on electricity firms, or prices, according to a report from ratings agency Moody's Investors Service

31 May - BNP Paribas has formed a distribution agreement with French trade-credit risk-solutions provider Coface, to offer the latter's credit risk insurance products through BNP Paribas' worldwide Trade Centre network

30 May - A growing share of global trade and anticipated consolidation between the Australian and New Zealand agribusiness industries may lead to greater risk, according to a new report from Standard & Poor's

29 May - Firms on the sell-side of the foreign exchange market may be well entrenched in the internet age, but among corporate treasurers traditional trading methods are still the mode of choice

28 May - Deutsche Bank has become a primary dealer of fixed-income products after being awarded a primary dealership licence by the Monetary Authority of Singapore. The award makes it the twelfth fixed-income-products dealer in the Lion State

To read more now, click http://www.risknews.net

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RiskNews readers can receive a FREE copy of the June issue of Credit magazine, featuring the results of the 2001 Credit Analysts of the Year Survey. Visit http://www.Creditmag.com/freeissue

Would any of your colleagues or business associates like to hear about this offer from Credit magazine? Please forward them this message.

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Technology and Exchanges - 1/6/2001
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31 May - Plans to create a global derivatives trading-platform, a/c/e, initiated by the Chicago Board of Options Exchange and European derivatives exchange Eurex, appear to be going awry, as the Chicago bourse continues to block vital financing required for technical upgrades

31 May - Eurex and Deutsche B?rse are set to market euro-denominated US equities, exchange-traded funds and stock options, marking the first stage of a plan to create a global market-place

30 May - Atlanta-based electronic energy and commodities trading platform, the Intercontinental Exchange, has won the backing of a majority of the London International Petroleum Exchange's shareholders for its takeover of the firm

30 May - The wholesale banking unit of the UK's Abbey National, Abbey National Treasury Services (Ants), plans to implement Syntegra's ITS trading platform on an international basis

30 May - Reuters has opened up access to its Treasury Solutions trading systems via an application programme interface to offer system-to-system trading to multi-bank portals

29 May - US treasury solutions and services provider Wall Street System has upgraded its front- to back-office treasury and risk management application to handle new products such as credit derivatives, debt issuance and mortgage and asset-backed bonds

29 May - International consulting firm Tillinghast-Towers Perrin and Toronto-based risk management software provider Annuity Systems have formed an alliance to market a new risk management tool for equity-based insurance products

To read more now, click http://www.risknews.net

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NEW for June!! 'M-FINANCE' newsletter for mobile commerce in financial services. A new monthly newsletter from the Risk Waters Group. Get a FREE launch issue OR save ?200/$300 if you subscribe. Visit the pre-launch website at
http://www.m-financenews.com

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People - 1/6/2001
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31 May - Lehman Brothers has appointed Philippe Dufournier as a managing director and co-head of derivative sales in Europe, as part of the US bank's growing desire to build up its derivatives business

30 May - ABN Amro has hired Nigel Fox for a new role as its global head of derivatives marketing within it Global Financial Markets business in London

30 May - German banking group West LB has hired Graham Leighton as associate director of its gold, energy and commodities group

30 May - Credit Suisse First Boston is adding to the JP Morgan Chase poaching spree by hiring three of its interest rate derivatives traders based in New York and London. It has also hired a trader from Credit Agricole Indosuez

30 May - The London Metal Exchange has made Simon Heale its new chief executive, effective from July 2, replacing David King who announced his resignation in January this year

To read more now, click http://www.risknews.net

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Need to know more about operational risk? 'OPERATIONAL RISK' is the only newsletter to provide news and analysis in this new and challenging field. Visit http://www.OperationalRiskonline.com to visit the NEW website and view a sample issue (includes a special Basel report)

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Events - 1/6/2001
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If any of your colleagues or business associates would be interested in these events, please forward them this message. Thank you.

ALM 2001 - Asset/Liability & Risk Management 2001, New York, June 21 & 22, 2001

Risk magazine's fifth annual conference examining advanced strategies and latest developments in asset/liability management and enterprise-wide risk management. Highlights include:
&#61623; Interactive panel discussion assessing the latest proposals for the New Basel Capital Accord
&#61623; Analysing effective methods for measuring and managing liquidity risk, interest rate risk and credit risk
&#61623; Two separately bookable one-day pre-conference seminars

For a full listing of topics and speakers please visit:
http://www.risk-conferences.com/alm2001usa?caller=risknews_update

Telecoms Capacity 2001 USA, New York, June 28 & 29, 2001?

Bringing you the latest developments in the commoditisation of the global telecoms market, Telecoms Capacity 2001 USA includes a keynote address from Shirish Lal, BROADWING COMMUNICATIONS and two intensively researched streams on 'Effective Trading and Risk Management' and 'Analysing the Challenges for a Commoditised Capacity Market'. For a full listing of topics and speakers please visit:

http://www.risk-conferences.com/telecomsusa?caller=risknews_update

Alternative Risk Strategies 2001 Europe, London 28 & 29 June 2001 ?

Risk magazine's inaugural European conference providing a comprehensive analysis of the latest developments and strategies in alternative risk financing, credit risk transfer, securitisation of catastrophe insurance risk and the modelling and pricing of these products. For a full programme and further information please visit:

http://www.risk-conferences.com/alternativeeuro?caller=risknews_update

Coming soon ?

RISK 2001 AUSTRALIA - EXCLUSIVE PRE-REGISTRATION OFFER!

Risk and EPRM magazines' annual Australian derivatives and risk management congress in Sydney, 20 & 21 August 2001. Help us produce an event to suit you by completing our pre-event survey. Pre-register for this event and receive a 10% discount!

http://www.risk-conferences.com/risk2001aus?caller=risknews_update

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All other event details can be found at either http://www.risk-conferences.com or http://www.risktraining.com


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