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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
SSA
New contracts cannot yet be traded in US
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  • Institutional investors are increasingly entering at-the-money put spreads on the S&P 500 in a bid to protect against further declines in US equities while profiting from the current high level of convexity in the volatility market.
  • The increasing likelihood of the five-year CMS rolling down in two years’ time, driven by inflation and potential quantitative easing from the European Central Bank, has opened up the opportunity to sell two-year in-the-money digital caps on the underlying.
  • The volume of interest rate swap trading on swap execution facilities dropped by between 30%-40% during the first week of mandatory trading, according to Colby Jenkins, research analyst at TABB Group.
  • Institutional investors that acquired vanilla options on sterling against the US dollar ahead of the Verizon-Vodafone deal that took place on February 21 have moved to sell the instruments back into the market due to a lack of volatility in the currency pair.
  • CME Clearing Europe is adding a series of new interest rate swaps to its existing interest rate swap offering ahead of the start of mandated clearing in Europe, which is slated for later this year.
  • Electronic networks for trading over-the-counter financial instruments such as swaps are set to become much more efficient after the FIX trading community adopted a standardisation initiative on Thursday. The move will help firms with the transition from manual to automated dissemination of information between dealers and clients.