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JP Morgan and Dutch pension fund PGGM transacted derivatives margin trade
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◆ Chinese bank treasury shift from USTs to dollar callables considered ◆ Some European SSAs face cross-currency limitations ◆ Previous market staple 'almost non-existent'
Goldman's Hong takes over from Jeroen Krens
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Bank intermediaries eye resurgence in profitable trades
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  • The UK’s Financial Conduct Authority has fined interdealer broker Tullet Prebon £15.4m over various alleged failings, including broker conduct. The FCA claimed “lavish entertainment” and a “lack of controls” had allowed improper trading to take place.
  • Antagonism between the United Kingdom and European Union in Brexit negotiations is making interest rate and credit swap market fragmentation more likely by the day, as market participants in both jurisdictions solidify backup plans to trade on US swap execution facilities (SEFs).
  • Trading in Nasdaq’s Stockholm ESG equity index futures has surpassed 1m contracts in the year since their launch, as investors clamour for sustainable investment tools.
  • Sponsors that are bullish on the project finance market for solar assets in Texas have begun to explore contract structures that preserve more potential upside in their hedges while still providing comfort to lenders and tax equity investors.
  • Rates trading desks are seeking owners of triple-A European CLO tranches, because of the value of the embedded Euribor floors, which convert negative Euribor prints to 0%. These can be stripped out and sold to the market, monetising a feature of the bonds that has become sharply more valuable as euro interest rates have plunged this summer.
  • A new report from the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) has set out the governance of key over-the-counter (OTC) derivatives data elements.