DOCSLIB.ORG

"Security-Based Swap Agreement"; Mixed Sw

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Corrected to Conform to Federal Register Version COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 1 RIN 3038-AD46 SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 240 Release No. 33-9204; 34-64372; File No. S7-16-11 RIN 3235-AL14 Further Definition of “Swap,” “Security-Based Swap,” and “Security-Based Swap Agreement”; Mixed Swaps; Security-Based Swap Agreement Recordkeeping AGENCIES: Commodity Futures Trading Commission; Securities and Exchange Commission. ACTION: Joint proposed rules; proposed interpretations. SUMMARY: In accordance with section 712(a)(8), section 712(d)(1), sections 712(d)(2)(B) and (C), sections 721(b) and (c), and section 761(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), the Commodity Futures Trading Commission (“CFTC”) and the Securities and Exchange Commission (“SEC”) (collectively, “Commissions”), in consultation with the Board of Governors of the Federal Reserve System (“Board”), are jointly issuing proposed rules and proposed interpretive guidance under the Commodity Exchange Act (“CEA”) and the Securities Exchange Act of 1934 (“Exchange Act”) to further define the terms “swap,” “security- based swap,” and “security-based swap agreement” (collectively, “Product Definitions”), regarding “mixed swaps,” and governing books and records with respect to “security- based swap agreements.” DATES: Comments should be received on or before July 22, 2011. ADDRESSES: Comments may be submitted, identified by File No. S7-16-11, by any of the following methods: CFTC: • Agency website, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments through the website. • Mail: David A. Stawick, Secretary, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581. • Hand Delivery/Courier: Same as mail above. • Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Please submit your comments using only one method. “Product Definitions” must be in the subject field of responses submitted via e-mail, and clearly indicated on written submissions. All comments must be submitted in English, or if not, accompanied by an English translation. Comments will be posted as received to www.cftc.gov. You should submit only information that you wish to make available publicly. If you wish the CFTC to consider information that you believe is exempt from disclosure under the Freedom of Information Act, a petition for confidential treatment of the exempt information may be submitted according to the procedures established in section 145.9 of the CFTC’s regulations.1 The CFTC reserves the right, but shall have no obligation, to review, pre-screen, filter, redact, refuse or remove any or all of your submission from www.cftc.gov that it 1 17 CFR 145.9. 2 may deem to be inappropriate for publication, including obscene language. All submissions that have been redacted or removed that contain comments on the merits of the rulemaking will be retained in the public comment file and will be considered as required under the Administrative Procedure Act and other applicable laws, and may be accessible under the Freedom of Information Act. SEC: Electronic comments: • Use the Commission’s Internet comment form (http://www.sec.gov/rules/proposed.shtml); • Send an e-mail to [email protected]. Please include File Number S7-16-11 on the subject line; or • Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments. Paper comments: • Send paper comments in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. All submissions should refer to File Number S7-16-11. This file number should be included on the subject line if e-mail is used. To help us process and review your comments more efficiently, please use only one method. The SEC will post all comments on the SEC’s Internet website (http://www.sec.gov/rules/proposed.shtml). Comments are also available for website viewing and printing in the SEC’s Public Reference Room, 100 F Street, NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. All comments received will be posted 3 without change; the SEC does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT: CFTC: Julian E. Hammar, Assistant General Counsel, at 202-418-5118, [email protected], Mark Fajfar, Assistant General Counsel, at 202-418-6636, [email protected], or David E. Aron, Counsel, at 202-418- 6621, [email protected], Office of General Counsel, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581; SEC: Matthew A. Daigler, Senior Special Counsel, at 202-551-5578, Cristie L. March, Attorney-Adviser, at 202-551-5574, or Leah M. Drennan, Attorney-Adviser, at 202-551- 5507, Division of Trading and Markets, or Michael J. Reedich, Special Counsel, or Tamara Brightwell, Senior Special Counsel to the Director, at 202-551-3500, Division of Corporation Finance, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-7010. SUPPLEMENTARY INFORMATION: The Commissions jointly are proposing new rules and interpretive guidance under the CEA and the Exchange Act relating to the Product Definitions, mixed swaps, and security-based swap agreements. 4 TABLE OF CONTENTS I. Background. II. Scope of Definitions of Swap and Security-Based Swap. A. Introduction. B. Proposed Rules and Interpretive Guidance Regarding Certain Transactions Outside the Scope of the Definitions of the Terms “Swap” and “Security- Based Swap.” 1. Insurance Products. a) Types of Insurance Products. b) Providers of Insurance Products. 2. The Forward Contract Exclusion. a) Forward Contracts in Nonfinancial Commodities. b) Commodity Options and Commodity Options Embedded in Forward Contracts. c) Security Forwards. 3. Consumer and Commercial Agreements, Contracts, and Transactions. 4. Loan Participations. C. Proposed Rules and Interpretive Guidance Regarding Certain Transactions Within the Scope of the Definitions of the Terms “Swap” and “Security- Based Swap.” 1. In General. 2. Foreign Exchange Products. a) Foreign Exchange Products Subject to the Secretary’s Swap Determination: Foreign Exchange Forwards and Foreign Exchange Swaps. b) Foreign Exchange Products Not Subject to the Secretary’s Swap Determination. i) Foreign Currency Options. ii) Non-Deliverable Forward Contracts Involving Foreign Exchange. iii) Currency Swaps and Cross-Currency Swaps. 3. Forward Rate Agreements. 4. Combinations and Permutations of, or Options on, Swaps and Security-Based Swaps. 5. Contracts for Differences. 5 D. Certain Interpretive Issues. 1. Agreements, Contracts, or Transactions That May Be Called, or Documented Using Form Contracts Typically Used for, Swaps or Security-Based Swaps. 2. Transactions in Regional Transmission Organizations and Independent System Operators. III. The Relationship Between the Swap Definition and the Security-Based Swap Definition. A. Introduction. B. Title VII Instruments Based on Interest Rates, Other Monetary Rates, and Yields. 1. Title VII Instruments Based on Interest Rates or Other Monetary Rates That are Swaps. 2. Title VII Instruments Based on Yields. 3. Title VII Instruments Based on Government Debt Obligations. C. Total Return Swaps. D. Security-Based Swaps Based on a Single Security or Loan and Single-Name Credit Default Swaps. E. Title VII Instruments Based on Futures Contracts. F. Use of Certain Terms and Conditions in Title VII Instruments. G. The Term “Narrow-Based Security Index” in the Security-Based Swap Definition. 1. Introduction. 2. Applicability of the Statutory Narrow-Based Security Index Definition and Past Guidance of the Commissions to Title VII Instruments. 3. Narrow-Based Security Index Criteria for Index Credit Default Swaps. a) In General. b) Proposed Rules Regarding the Definitions of “Issuers of Securities in a Narrow-Based Security Index” and “Narrow-Based Security Index” for Index Credit Default Swaps. i) Number and Concentration Percentages of Reference Entities or Securities. ii) Public Information Availability Regarding Reference Entities and Securities. 6 iii) Treatment of Indexes Including Reference Entities That Are Issuers of Exempted Securities or Including Exempted Securities. 4. Security Indexes. 5. Evaluation of Title VII Instruments on Security Indexes That Move from Broad-Based to Narrow-Based or Narrow-Based to Broad-Based. a) In General. b) Title VII Instruments on Security Indexes Traded on Designated Contract Markets, Swap Execution Facilities, Foreign Boards of Trade, Security-Based Swap Execution Facilities, and National Securities Exchanges. H. Method of Settlement of Index CDS. I. Security-Based Swaps as Securities under the Exchange Act and Securities Act. IV. Mixed Swaps. A. Scope of the Category of Mixed Swap. B. Regulation of Mixed Swaps. 1. Introduction. 2. Bilateral Uncleared Mixed Swaps Entered Into by Dually- Registered Dealers or Major Participants. 3. Regulatory Treatment for Other Mixed Swaps. V. Security-Based Swap Agreements. A. Introduction. B. Swaps that are Security-Based Swap Agreements. C. Books and Records Requirements for Security-Based Swap Agreements. VI. Process for Requesting Interpretations of the Characterization of a Title VII Instrument. VII. Anti-Evasion. A. CFTC Proposed
Load more

Recommended publications
  • Interbank Offered Rates (Ibors) and Alternative Reference Rates (Arrs)
    VERSION: 24 SEPTEMBER 2020 Interbank Offered Rates (IBORs) and Alternative Reference Rates (ARRs) The following table has been compiled on the basis of publicly available information. Whilst reasonable care has been taken to ensure that the information in the table is accurate as at the date that the table was last revised, no warranty or representation is given as to the information in the table. The information in the table is a summary, is not exhaustive and is subject to change. Key Multiple-rate approach (IBOR + RFR) Moving to RFR only IBOR only Basis on Development of Expected/ Expected fall which forward-looking likely fall- back rate to IBOR is Expected ARR? back rate to the ARR (if 3 Expected being Date from date by the IBOR2 applicable) discontinu continued which which ation date (if Alternative ARR will replaceme for IBOR applicable Reference be nt of IBOR Currency IBOR (if any) )1 Rate published is needed ARS BAIBAR TBC TBC TBC TBC TBC TBC TBC (Argentina) 1 Information in this column is taken from Financial Stability Board “Reforming major interest rate benchmarks” progress reports and other publicly available English language sources. 2 This column sets out current expectations based on publicly available information but in many cases no formal decisions have been taken or announcements made. This column will be revisited and revised following publication of the ISDA 2020 IBOR Fallbacks Protocol. References in this column to a rate being “Adjusted” are to such rate with adjustments being made (i) to reflect the fact that the applicable ARR may be an overnight rate while the IBOR rate will be a term rate and (ii) to add a spread.
    [Show full text]
  • LCH Clears First Swaps Referencing SARON
    LCH clears first swaps referencing SARON Migration to new Swiss reference rate comes ahead of discontinuation of TOIS on 29 December 2017 SwapClear has cleared circa CHF 30 trillion in Swiss Franc-denominated interest rate derivatives since the service’s inception Basler Kantonalbank, Credit Suisse and Zürcher Kantonalbank among the first members to clear using the new rate 18 October 2017 LCH, a leading global clearing house, today announced that it is now clearing Swiss Franc (CHF) interest rate swaps referencing SARON, the Swiss average overnight rate. The move comes ahead of the migration of CHF reference interest rates from TOIS to SARON, scheduled for 29 December 2017. Basler Kantonalbank, Credit Suisse and Zürcher Kantonalbank were among the first market participants to begin clearing using the rate. SARON is the new rate to be used for CHF overnight indexed swaps (OIS) and has recently been recommended as the alternative to Swiss Franc LIBOR and TOIS*. LCH has cleared approximately CHF 30 trillion in Swiss Franc-denominated interest rate derivatives since SwapClear started clearing the currency in June 2002. Michael Davie, Global Head of Rates, LCH, said: “The Swiss market is in the vanguard of a global move to new risk-free reference rates, attracting special attention given the Swiss Franc’s reserve currency status. LCH is delighted to have worked closely with our members, their clients and the regulators to effect a smooth and timely transition from TOIS to SARON. As well as clearing OTC derivatives referencing SARON, LCH has adopted this new preferred rate for cash flow discounting and investment benchmarking.
    [Show full text]
  • Economics Wednesday BRIEF Europe News Analysis & Commentary
    This document is being provided for the exclusive use of NICK FERRIS at BLOOMBERG/ 731 LEXINGTON 06.22.11 Economics WEDNESDAY Europe NEWS ANALYSIS & COMMENTARY BRIEF ECONOMIC CALENDAR Papandreou Wins Vote, Euro Falls, Fed Decision (LONDON TIME) ■ WHAT TO WATCH: The euro weakened against the dollar on concern Greek Prime Minister George Papandreou will EUROPEAN DAYBOOK: COUNTRY TIME EVENT SURVEY PRIOR fail to pass austerity measures even after winning last night’s Louisa Fahy confidence vote. European Commission President Jose FR 07:45 Own-Company Prod. Outlook - 11 Barroso said the result ``removes an element of uncertainty FR 07:45 Production Outlook Indicator - 15 from an already very difficult situation.’’ The IMF said Spain must step up efforts to reform its economy. The Bank of England publishes the min- FR 07:45 Business Conf. Indicator 106 107 utes of its last meeting. U.S. Federal Reserve decisions on rates, bond purchases. DE 08:00 Consumer Conf. Indicator -0.5 2.6 ■ ECONOMICS: Euro-Zone Industrial New Orders (MoM) April; est. 1 percent, 10 SP 08:00 Mortgages-capital loaned YoY - -0.343 a.m. Euro Zone Consumer Confidence June; est. -10.4 (prior -9.8), 3 p.m. BOE minutes 9.30 a.m. Bank of Portugal monthly statistical report, 11 a.m. Trichet, King SP 08:00 Mortgages on Houses YoY - -0.202 speak at ESRB press conference, 5.30 p.m.. SW 08:00 Consumer Confidence 17 17.9 ■ GOVERNMENT: Italy’s Berlusconi speaks in parliament on government’s reshuf- fle, 10 a.m. Merkel briefs Bundestag Europe Committee on EU summit, 10.30 a.m.
    [Show full text]
  • Replacing the LIBOR with a Transparent and Reliable Index of Interbank Borrowing: Comments on the Wheatley Review of LIBOR Initial Discussion Paper
    Replacing the LIBOR with a Transparent and Reliable Index of Interbank Borrowing: Comments on the Wheatley Review of LIBOR Initial Discussion Paper 6 September 2012 * Rosa M. Abrantes-Metz and David S. Evans *Abrantes-Metz is Adjunct Associate Professor at the Stern School of Business, New York University and a Principal of Global Economics Group; Evans is Executive Director of the Jevons Institute for Competition Law and Economics and Visiting Professor at the University College London, Lecturer at the University of Chicago Law School, and Chairman, Global Economics Group. The authors thank John H. Cochrane, Albert D. Metz, Richard Schmalensee, and Brian Smith for helpful insights. The views expressed are those of the authors and should not be attributed to affiliated institutions or their clients. 1 I. Summary 1. The Wheatley Review released its Initial Discussion Paper (the “Discussion Paper”) on August 10, 2012 and has sought comments on its preliminary findings and recommendations on how to reform the London Interbank Offered Rate (“LIBOR”).1 2. This submission presents an alternative to the LIBOR that would in our view: a. Eliminate or significantly reduce the severe defects in the LIBOR which lead the Discussion Paper to conclude that continuing with the current system is “not a viable option;”2 b. Provide a transparent and reliable measure of interbank lending rates during normal times as well as financial crises; c. Minimize disruptions to the market; and, d. Provide parties relying on the LIBOR with a standard that would maintain continuity with the LIBOR. 3. This alternative, which we call the “Committed” LIBOR (CLIBOR), would: a.
    [Show full text]
  • LIBOR Transition Key Dates
    IBOR Reform Key Dates July 2021 Disclaimer J.P.Morgan does not provide legal, tax, financial or accounting advice and clients should consider any loan amendments and the appropriateness of the fallbacks incorporated therein together with their legal, tax, financial and accounting advisers, taking into consideration their own particular circumstances and the fallbacks that may be applicable in any related products. Please visit the following link for JPMorgan disclosures: https://www.jpmorgan.com/global/disclosures Key IBOR Transition Dates Currency IBOR Settings Permanent Cessation Date1 Cease Trading New IBOR Contracts Select Milestones LIBOR (1-week and 2-month) December 31, 2021 FRB/FDIC/OCC: The agencies encourage banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31st, 2021. The Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (MRAC) Interest Rate Benchmark Reform Subcommittee: ◼ Recommends that on July 26th, 2021 and thereafter, that USD End 2021 (All Products) interdealer trading conventions switch from LIBOR to the LIBOR (Overnight, 1-month, 3- June 30, 2023 Secured Overnight Financing Rate (SOFR) for USD linear month, 6-month, 12-month) interest rate swaps. This is referred to as “SOFR First”. ◼ The SOFR First initiative also recommends keeping interdealer brokers’ screens for LIBOR linear swaps available until October 22nd, 2021, but for information purposes only. After this date, these screens should be turned off.
    [Show full text]
  • Libor's Long Goodbye
    LIBOR’S LONG GOODBYE Readiness for LIBOR transition TRANSACTIONAL POWERHOUSE 1 CASE0155238_Report_Print Ready.indd 1 21/07/2020 12:06:23 Introduction As has been noted in a continuous drumbeat of warnings from major global, regional and local regulatory bodies, LIBOR is expected to go away at the end of 2021, when the UK Financial Conduct Authority (FCA) has announced it will withdraw support for the rate. This deadline was first announced This report also includes a matrix written, in each case that mature in a speech by Andrew Bailey, chief showing an assessment of readiness after 2021. The official sector executive of the FCA, in July 2017. for transition by currency and product of regulators and central banks Since more than half of the roughly type. As we’ve noted previously, continues to stress the need to four-and-a-half-year-period that that LIBOR transition is at different develop robust alternative reference speech gave until the deadline has stages of progress in different rates and robust contractual fallbacks now elapsed, it is perhaps fitting to jurisdictions and with respect to in the event that LIBOR were to consider how far markets have come different financial products. cease or become unrepresentative in LIBOR transition, and how much of underlying financial reality, and to further they need to go. LIBOR transition remains a transition to such alternative rates. fundamental issue confronting Despite the uncertainty that exists, the This report assesses the state of financial markets. To date, transition FCA has stated firmly that the end-2021 readiness for transition from LIBOR has been slower than regulators deadline remains in effect, a statement (and other interbank offered rates would like, and considerable it reiterated on 25 March 2020 in (IBORs)) to alternative interest rates uncertainty still exists (and may response to the Covid-19 pandemic.
    [Show full text]
  • Faysal Funds
    Accounts forthe Quarter Ended September 30, 2008 FAYSAL BALANCED GROWTH FUND The Faysal Balanced Growth Fund (FBGF) is an open-ended mutual fund. The units of FBGF are listed on the Karachi Stock Exchange and were initially offered to the public on April 19, 2004. FBGFseeks to provide long-term capital appreciation with a conservative risk profile and a medium to long-term investment horizon. FBGF's investment philosophy is to provide stable returns by investing in a portfolio balanced between equities and fixed income instruments. Fund Information Management Company Faysal Asset Management Limited Board of Directors of the Management Company Mr. Khalid Siddiq Tirmizey, Chairman Mr. Salman Haider Sheikh, Chief Executive Officer Mr. Sanaullah Qureshi, Director Mr. Syed Majid AIi, Director Mr. Feroz Rizvi, Director CFO of the Management Company Mr. Abdul Razzak Usman Company Secretary of the Management Company Mr. M. Siddique Memon Audit Committee Mr. Feroz Rizvi, Chairman Mr. Sanaullah Qureshi, Member Mr. Syed Majid Ali, Member Trustee Central Depository Company of Pakistan Limited Suit #. M-13, 16, Mezzanine Floor, Progressive Plaza, Beaumont Road, Near PIDC House, Karachi. Bankers to the Fund Faysal Bank Limited MCB Bank Limited Bank Alfalah Limited Atlas Bank Limited The Bank of Punjab Auditors Ford Rhodes Sidat Hyder & Co., Chartered Accountants Legal Advisor Mohsin Tayebely & Co., 2nd Floor, Dime Centre, BC-4, Block-9, KDA-5, Clifton, Karachi. Registrars Gangjees Registrar Services (Pvt) Limited Room # 506, 5th Floor, Clifton Centre, Kehkashan Clifton - Karachi. Distributors Access Financial Services (Pvt.) Ltd. AKD Securities (Pvt.) Limited Faysal Asset Management Limited Faysal Bank Limited PICIC Commercial Bank Limited Reliance Financial Products (Pvt.) Limited Invest Capital & Securities (Pvt.) Limited Flow(Private) Limited IGI Investment Bank Limited Pak Oman Investment Bank Limited Alfalah Securities (Pvt) Limited JS Global Capital Limited t"''' e , FAYSAL BALANCED ~ .
    [Show full text]
  • Notice of Listing of Products by Icap Sef (Us) Llc for Trading by Certification 1
    NOTICE OF LISTING OF PRODUCTS BY ICAP SEF (US) LLC FOR TRADING BY CERTIFICATION 1. This submission is made pursuant to CFTC Reg. 40.2 by ICAP SEF (US) LLC (the “SEF”). 2. The products certified by this submission are the following: Fixed for Floating Interest Rate Swaps in CNY (the “Contract”). Renminbi (“RMB”) is the official currency of the Peoples Republic of China (“PRC”) and trades under the currency symbol CNY when traded in the PRC and trades under the currency symbol CNH when traded in off-shore markets. 3. Attached as Attachment A is a copy of the Contract’s rules. The SEF is listing the Contracts by virtue of updating the terms and conditions of the Fixed for Floating Interest Rate Swaps submitted to the Commission for self-certification pursuant to Commission Regulation 40.2 on September 29, 2013. A copy of the Contract’s rules marked to show changes from the version previously submitted is attached as Attachment B. 4. The SEF intends to make this submission of the certification of the Contract effective on the day following submission pursuant to CFTC Reg. 40.2(a)(2). 5. Attached as Attachment C is a certification from the SEF that the Contract complies with the Commodity Exchange Act and CFTC Regulations, and that the SEF has posted a notice of pending product certification and a copy of this submission on its website concurrent with the filing of this submission with the Commission. 6. As required by Commission Regulation 40.2(a), the following concise explanation and analysis demonstrates that the Contract complies with the core principles of the Commodity Exchange Act for swap execution facilities, and in particular Core Principle 3, which provides that a swap execution facility shall permit trading only in swaps that are not readily susceptible to manipulation, in accordance with the applicable guidelines in Appendix B to Part 37 and Appendix C to Part 38 of the Commission’s Regulations for contracts settled by cash settlement and options thereon.
    [Show full text]
  • APAC IBOR Transition Benchmarking Study
    R E P O R T APAC IBOR Transition Benchmarking Study. July 2020 Banking & Finance. 0 0 sia-partners.com 0 0 Content 6 • Executive summary 8 • Summary of APAC IBOR transitions 9 • APAC IBOR deep dives 10 Hong Kong 11 Singapore 13 Japan 15 Australia 16 New Zealand 17 Thailand 18 Philippines 19 Indonesia 20 Malaysia 21 South Korea 22 • Benchmarking study findings 23 • Planning the next 12 months 24 • How Sia Partners can help 0 0 Editorial team. Maximilien Bouchet Domitille Mozat Ernest Yuen Nikhilesh Pagrut Joyce Chan 0 0 Foreword. Financial benchmarks play a significant role in the global financial system. They are referenced in a multitude of financial contracts, from derivatives and securities to consumer and business loans. Many interest rate benchmarks such as the London Interbank Offered Rate (LIBOR) are calculated based on submissions from a panel of banks. However, since the global financial crisis in 2008, there was a notable decline in the liquidity of the unsecured money markets combined with incidents of benchmark manipulation. In July 2013, IOSCO Principles for Financial Benchmarks have been published to improve their robustness and integrity. One year later, the Financial Stability Board Official Sector Steering Group released a report titled “Reforming Major Interest Rate Benchmarks”, recommending relevant authorities and market participants to develop and adopt appropriate alternative reference rates (ARRs), including risk- free rates (RFRs). In July 2017, the UK Financial Conduct Authority (FCA), announced that by the end of 2021 the FCA would no longer compel panel banks to submit quotes for LIBOR. And in March 2020, in response to the Covid-19 outbreak, the FCA stressed that the assumption of an end of the LIBOR publication after 2021 has not changed.
    [Show full text]
  • 0.30560 0.30570 Daily Treasury Market Commentary KUWAITI DINAR
    KUWAITI DINAR 0.30560 0.30570 Daily Treasury Market Commentary October 28, 2020 Foreign Exchange Developments: Economic Updates: The euro fell against the dollar on Wednesday following a New orders for key US-made capital goods increased Currency Price MTD % 3M% YTD% media report that France's government was leaning to six-year high in September, wrapping up a quarter EUR/USD 1.1779 0.51 0.55 5.07 toward reinstating a national lockdown to curb a of potentially record growth in business spending and GBP/USD 1.3043 0.98 0.87 -1.64 resurgence in coronavirus cases. the economy. AUD/USD 0.7145 -0.24 -0.18 1.75 The dollar, however, gave up early gains against other Britain must spell out how far it wants to diverge from USD/CHF 0.909 -1.28 -0.98 -6.09 major currencies as sentiment turned bearish due to European Union rules if it wants access to the bloc's USD/JPY 104.26 -1.16 -0.81 -4.25 uncertainty about the outcome of the U.S. presidential financial market from January, a top European USD/CAD 1.3191 -0.97 -1.39 1.57 election next week. The euro fell 0.14% to $1.1780 in Asia Commission official said on Tuesday. on Wednesday, down for a third consecutive session. Sterling held steady at $1.3035, supported by hopes for a Local & GCC news: last-minute trade deal between Britain and the European Kuwait's central bank announced on Tuesday it was Index Price Change MTD% YTD% Union.
    [Show full text]
  • Habibmetro Modaraba Management (AN(AN ISLAMICISLAMIC FINANCIALFINANCIAL INSTITUTION)INSTITUTION)
    A N N U A L R E P O R T 2017 1 HabibMetro Modaraba Management (AN(AN ISLAMICISLAMIC FINANCIALFINANCIAL INSTITUTION)INSTITUTION) 2 A N N U A L R E P O R T 2017 JOURNEY OF CONTINUOUS SUCCESS A long term partnership Over the years, First Habib Modaraba (FHM) has become the sound, strong and leading Modaraba within the Modaraba sector. Our stable financial performance and market positions of our businesses have placed us well to deliver sustainable growth and continuous return to our investors since inception. During successful business operation of more than 3 decades, FHM had undergone with various up and down and successfully countered with several economic & business challenges. Ever- changing requirement of business, product innovation and development were effectively managed and delivered at entire satisfaction of all stakeholders with steady growth on sound footing. Consistency in perfect sharing of profits among the certificate holders along with increase in certificate holders' equity has made FHM a sound and well performing Modaraba within the sector. Our long term success is built on a firm foundation of commitment. FHM's financial strength, risk management protocols, governance framework and performance aspirations are directly attributable to a discipline that regularly brings prosperity to our partners and gives strength to our business model which is based on true partnership. Conquering with the challenges of our operating landscape, we have successfully journeyed steadily and progressively, delivering consistent results. With the blessing of Allah (SWT), we are today the leading Modaraba within the Modaraba sector of Pakistan, demonstrating our strength, financial soundness and commitment in every aspect of our business.
    [Show full text]
  • Prospectus, Especially the Risk Factors Given at Para 4.11 of This Prospectus Before Making Any Investment Decision
    ADVICE FOR INVESTORS INVESTORS ARE STRONGLY ADVISED IN THEIR OWN INTEREST TO CAREFULLY READ THE CONTENTS OF THIS PROSPECTUS, ESPECIALLY THE RISK FACTORS GIVEN AT PARA 4.11 OF THIS PROSPECTUS BEFORE MAKING ANY INVESTMENT DECISION. SUBMISSION OF FALSE AND FICTITIOUS APPLICATIONS ARE PROHIBITED AND SUCH APPLICATIONS’ MONEY MAY BE FORFEITED UNDER SECTION 87(8) OF THE SECURITIES ACT, 2015. SONERI BANK LIMITED PROSPECTUS THE ISSUE SIZE OF FULLY PAID UP, RATED, LISTED, PERPETUAL, UNSECURED, SUBORDINATED, NON-CUMULATIVE AND CONTINGENT CONVERTIBLE DEBT INSTRUMENTS IN THE NATURE OF TERM FINANCE CERTIFICATES (“TFCS”) IS PKR 4,000 MILLION, OUT OF WHICH TFCS OF PKR 3,600 MILLION (90% OF ISSUE SIZE) ARE ISSUED TO THE PRE-IPO INVESTORS AND PKR 400 MILLION (10% OF ISSUE SIZE) ARE BEING OFFERED TO THE GENERAL PUBLIC BY WAY OF INITIAL PUBLIC OFFER THROUGH THIS PROSPECTUS RATE OF RETURN: PERPETUAL INSTRUMENT @ 6 MONTH KIBOR* (ASK SIDE) PLUS 2.00% P.A INSTRUMENT RATING: A (SINGLE A) BY THE PAKISTAN CREDIT RATING COMPANY LIMITED LONG TERM ENTITY RATING: “AA-” (DOUBLE A MINUS) SHORT TERM ENTITY RATING: “A1+” (A ONE PLUS) BY THE PAKISTAN CREDIT RATING AGENCY LIMITED AS PER PSX’S LISTING OF COMPANIES AND SECURITIES REGULATIONS, THE DRAFT PROSPECTUS WAS PLACED ON PSX’S WEBSITE, FOR SEEKING PUBLIC COMMENTS, FOR SEVEN (7) WORKING DAYS STARTING FROM OCTOBER 18, 2018 TO OCTOBER 26, 2018. NO COMMENTS HAVE BEEN RECEIVED ON THE DRAFT PROSPECTUS. DATE OF PUBLIC SUBSCRIPTION: FROM DECEMBER 5, 2018 TO DECEMBER 6, 2018 (FROM: 9:00 AM TO 5:00 PM) (BOTH DAYS INCLUSIVE) CONSULTANT TO THE ISSUE BANKERS TO THE ISSUE (RETAIL PORTION) Allied Bank Limited Askari Bank Limited Bank Alfalah Limited** Bank Al Habib Limited Faysal Bank Limited Habib Metropolitan Bank Limited JS Bank Limited MCB Bank Limited Silk Bank Limited Soneri Bank Limited United Bank Limited** **In order to facilitate investors, United Bank Limited (“UBL”) and Bank Alfalah Limited (“BAFL”) are providing the facility of electronic submission of application (e‐IPO) to their account holders.
    [Show full text]