Thursday 28th August 2014
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South Africa’s central bank has disagreed with a ratings decision by Moody’s to downgrade Capitec Bank Limited (Capitec) by two notches, and place it on review for a further downgrade. The central bank says it respects the independent opinion of rating agencies but that it does not “agree with the rationale given in taking this step”. Two reasons are given for the rating action: a lower likelihood of sovereign systemic support based on decisions recently taken in relation to African Bank Limited (African Bank), and heightened concerns regarding the risk inherent in Capitec’s consumer lending focus. “With regard to the first point, it is important to reiterate that the approach taken by the SARB to any resolution to address systemic risk will always be based on the circumstances and merits of the particular prevailing situation. Decisions will also be informed, as was the case with African Bank, by principles contained in the Key Attributes for Effective Resolution Regimes proposed by the Financial Stability Board (FSB), which have the objective that a bank should be able to fail without affecting the system,” notes the central bank in an official statement. “This is in keeping with evolving international best practice. In the case of African Bank bond holders and wholesale depositors are taking a 10% haircut, which is generally regarded as being very positive given that the trades following the announcement of African Bank's results were taking place at around 40% of par. Therefore in fact substantial support was provided, not reduced. Moreover, all retail depositors were kept whole and are able to access their accounts fully,” it adds - According to the Hong Kong Monetary Authority (HKMA) credit card receivables increased by 2.1% in the second quarter to HKD112, after a reduction of 6.7% in the previous quarter. The total number of credit card accounts edged up by 0.7% to around 16.8m.The rollover amount, which reflects the amount of borrowing by customers using their credit cards, increased by 2.9% during the quarter to HKD19.2bn. The rollover ratio also rose marginally from 17.0% to 17.1% in the same period. The charge-off amount increased to HKD569mduring the quarter from HKD528m in the previous quarter. Correspondingly, the quarterly charge-off ratio rose to 0.51% from 0.46% in the previous quarter. The amount of rescheduled receivables transferred outside the surveyed institutions’ credit card portfolios reduced to HKD94m from HK$109m in the previous quarter. The delinquent amount increased to HKD249m at end-June from HKD239m at end-March. However, the delinquency ratio remained the same at 0.22% because of an increase in total card receivables. The combined delinquent and rescheduled ratio (after taking into account the transfer of rescheduled receivables mentioned above) edged up to 0.29% from 0.28% during the same period - Harkand has been awarded a contract to support Apache with inspection, repair and maintenance work (IRM) as well as light construction (LC) across their assets in the North Sea, following completion of a competitive tender exercise. The award includes the provision of vessels, ROV and diving services for a three-year period, plus two one-year options. The firm will also support offshore marine construction contractor EMAS AMC who have been awarded a separate contract for pipe lay and heavy construction as part of the same tender process. Harkand Europe managing director, David Kerr, said: “This contract is an important step in strengthening our close working relationship and growing our North Sea business with Apache.

EEX creates Pan-European OTC Clearing Service Offering - Three further products to be launched in February

Thursday, 14 February 2013
EEX creates Pan-European OTC Clearing Service Offering - Three further products to be launched in February The European Energy Exchange (EEX) is expanding its range of OTC clearing services step by step, to include additional products not traded on EEX or other European Commodity Clearing (ECC) partner exchanges. Together with the clearing house ECC, EEX will launch three further products for OTC clearing on 25 February 2013. http://www.ftseglobalmarkets.com/

The European Energy Exchange (EEX) is expanding its range of OTC clearing services step by step, to include additional products not traded on EEX or other European Commodity Clearing (ECC) partner exchanges. Together with the clearing house ECC, EEX will launch three further products for OTC clearing on 25 February 2013.

“Given the changing regulatory and political environment, clearing through a central counterparty gains in importance”, states Peter Reitz, chief executive officer of EEX Group. “In this context, we will provide market participants with a pan-European offering for clearing their bilateral energy trading activities through ECC and in so doing, increase our coverage to further commodities and regions”.

Hence, EEX and ECC will offer financially settled Scandinavian power futures for clearing. ECC already clears power futures for delivery in Germany, France, Austria, Belgium and the Netherlands, as well as Great Britain and Hungary. Since December, EEX and ECC have offered Romanian power futures as an OTC cleared product. As part of the co-operation with the Power Exchange Central Europe (PXE), ECC will provide clearing for Czech and Slovakian power in the near future also.

“Through integrated clearing of all products, participants benefit from standardised processes and netting effects which reduce the costs for clearing significantly. Through Cross Margining, only the net positions are offset against each other. Thus, participants who clear their Scandinavian power positions at ECC can achieve cost advantages”, explains Dr. Thomas Siegl, Chief Risk Officer of EEX Group.

Furthermore, from the end of February, two Euro-denominated coal futures based on Argus McCloskey API 2* and API 4* indices will be offered for clearing via ECC. This will enable, for example, companies which want to hedge power deliveries from coal plants, to settle coal futures in Euros, which considerably simplifies the processes for these participants.

The new OTC clearing products are designed for market participants all over Europe who want to use the benefits of the integrated clearing model for their energy trading activities. Therefore, EEX is taking a further step in bringing more volumes from the OTC market onto the exchange. All contracts are settled financially on the basis of established market indices. The new products can be registered for clearing via the exchange, either by brokers or directly by the counterparties.

European Energy Exchange (EEX) is the leading energy exchange in Europe. EEX develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group.

European Commodity Clearing (ECC) is the central clearing house for energy and related products in Europe. ECC ensures clearing, as well as physical and financial settlement of transactions concluded on APX-ENDEX, CEGH Gas Exchange of the Vienna Stock Exchange, EEX, EPEX SPOT, HUPX and Powernext and offers OTC Clearing services in addition.

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