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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
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New contracts cannot yet be traded in US
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  • Market participants in the new market structure featuring swap execution facilities anticipate fewer SEF platforms and more defined regional pools of liquidity. In a roundtable hosted by GlobalCapital, senior officials from the buyside, sellside and the SEFs discussed the issues including package trades, buyside access and the latest developments being pursued by platforms across credit, FX and interest rates.
  • Identified as the US solution to SEF equivalence in Europe, ‘qualified’ multilateral trading facilities have so far failed to materialise. Now that liquidity has fragmented and regulatory negotiations have reached an impasse, Hazel Sheffield looks at what impact the MTF dialogue will have on forthcoming cross-border regulatory initiatives.
  • As acting director for financial markets at the European Commission, Patrick Pearson has always called for substituted compliance to be applied on a transaction-by-transaction basis. Now the CFTC has stepped back from recognising European multilateral trading facilities as equivalent to US swap execution facilities, Hazel Sheffield asks about the state of the debate and its implications for cross-border harmonisation going forward.
  • Hedge funds and other asset managers are showing increased interest in hedging their investments in banks’ contingent convertible bonds with equity put options, writes Hazel Sheffield.
  • The smaller startup swap execution facilities are seeing some liquidity in their central limit order books, according to market officials.
  • The Autorité des Marchés Financiers has launched a public consultation as it looks to strengthen regulation surrounding regulated markets and multi-lateral trading facilities.