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◆ Public sector issuers embrace hedge fund bid... ◆ ... as they flex in the swap market ◆ Car makers welcomed back to bond market
CEB plans to print more structured notes and may launch inaugural Sofr bond in 2026
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New contracts cannot yet be traded in US
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  • Ian Pearce, formerly co-head of asset-backed securities and sterling credit trading for derivatives and cash at UBS in London, will join RBC Capital Markets in London as head of European credit trading in February.
  • Buyside firms are largely unprepared for the post-Dodd Frank over-the-counter derivatives environment and need to work toward a more balanced relationship with the major dealers through technology buildouts and adherence to a new set of industry best practice standards, according to a report.
  • Barclays Capital strategists are recommending 10-year trades playing cheap Nikkei implied volatility off of relatively richly priced U.S. dollar/yen implied volatility.
  • Some dealers are concerned a Commodity Futures Trading Commission proposal on regarding membership criteria for dealers in central counterparty clearinghouses could open the door for entities who lack market-making experience in credit default swaps. They may, in turn, misuse capital that should be reserved in the case of default.
  • Some U.S. firms have been reportedly paying European staffers up to 80% of their bonuses in cash. Among them, JPMorgan has reportedly been paying some employees in a range of 40-80%. A JPMorgan spokesman declined comment, but an official with knowledge of the situation said the firm’s pay policy was not much different from other firms.
  • Banco Central do Brasil has sold reverse fx swaps contracts in its second such offer of the year.