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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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  • Eris exchange has seen increased popularity in its seven-year standard swap futures contract, as firms look for ways to avoid the swap execution facility mandate for packaged trades under Dodd-Frank.
  • Hedge funds are holding back from signing up to the International Swaps and Derivatives Association protocol, which will automatically upgrade existing derivatives transactions between two signing counterparties to the new 2014 credit definitions. The funds want to wait and see how liquidity compares after the new contracts are released on Sept. 22.
  • Insurance firms have been entering six-to-18 month hybrid out-the money S&P 500 equity 90-to-95% put options over the last month that execute should rates rise.
  • UBS listed Tuesday on the Frankfurt and Stuttgart stock exchanges a new tracker certificate that uses a Solactive hedge fund index as the underlying.
  • The US Commodity Futures Trading Commission has issued an order filing and settling charges against broker-dealer Merrill Lynch for allegedly failing to diligently supervise its officers', employees', and agents' processing of futures exchange and clearing fees charged to its customers. The Commission’s order requires the firm pays a $1.2mn civil monetary penalty.
  • Buyside firms are taking responsibility for reporting of collateral and valuations in-house, voicing fears that delegating reporting of such data creates liability concerns.