Derivatives - All Articles

  • FSA To Press For CCP Stress Tests

    The U.K.’s Financial Services Authority said it would urge central counterparties to conduct stress tests on a daily basis as part of their reviews of how they would manage the risk of member defaulting on derivatives contracts.

    • 31 Jan 2012
  • UBS Launches Algo Trading In Mexico

    UBS has begun offering algorithmic trading strategies in Mexico to increase access for international clients trading in the region.

    • 31 Jan 2012
  • Nomura Vol ETF Grows Two-Fold

    An exchange traded fund from Nomura, recognized as the market’s first volatility-linked ETF that reduces incurred slide costs, has grown two-fold after seeing increased inflows from institutional investors from the beginning of January.

    • 31 Jan 2012
  • Clearinghouse Issue Snags Derivatives Discussions

    The issue of when the European Securities and Markets Authority would have the power to settle disputes among national regulators on clearinghouse oversight is said to be the main disagreement in discussions on European Union derivatives regulations.

    • 31 Jan 2012
  • CFTC Mulls High-Frequency Trade Rules

    The U.S. Commodity Futures Trading Commission is considering whether to issue a concept release over the next few months for comment on proposed regulations in the Dodd-Frank Act for automated and high-frequency trading in the derivatives markets, according CFTC Chairman Gary Gensler.

    • 31 Jan 2012
  • ISDA To Decide On Big Banks’ Insolvency

    The International Swaps and Derivatives Association is expected to decide as early as this week whether a Greek default would constitute a credit event that could trigger the payout credit default swaps referencing the European country’s debt, and which could wipe out the five largest banks, according to commodities and fx trader Jim Sinclair.

    • 31 Jan 2012
  • Wells Taps MD For Institutional Investments

    Wells Fargo Securities has hired Geoffrey Keith as a managing director in its institutional investment solutions group with responsibility for developing and marketing equity- and commodity-linked investments for its global institutional clients.

    • 31 Jan 2012
  • JPM Names Asia Fixed-Income Chief

    JPMorgan Chase has appointed Pranav Thakur to succeed Tarun Mahroti as head of fixed for Asia ex Japan and Australia.

    • 31 Jan 2012
  • ICE Clear Credit To Allow Portfolio Margining

    Intercontinental Exchange’s has announced that its ICE Clear Credit unit has begun offering portfolio margining benefits for clearing participants' proprietary positions, which it says will allow “for more efficient collateralization of opposite positions in index and correlated single-name credit default swap instruments.”

    • 31 Jan 2012
  • Debate Eyed Ahead Of E.U. Vote On Bourse Merger

    Michel Barnier, the European Union’s commissioner of financial services, is planning to ask that the proposed merger of NYSE Euronext and Deutsche Boerse be debated before a vote is taken.

    • 31 Jan 2012
  • European CDS Rally Appears Over

    The rally for credit default swap on European sovereign debt appears to be over, after spreads widened 3% following an additional 8% narrowing the previous week, according to Fitch Ratings.

    • 31 Jan 2012
  • Williams Adds Structured Finance

    The Williams Group has formed Eland Capital, a new unit that will explore structured finance opportunities for corporate, federal, state and local government clients.

    • 31 Jan 2012
  • Malaysia To Launch Clearinghouse In Q1

    Bursa Malaysia is preparing to launch a clearinghouse for its derivatives market in the first quarter, according to Sree Kumar, the exchange’s general manager of business development.

    • 31 Jan 2012
  • SocGen Touts Dual Digital Play

    Investors should buy dual digital options on the Australian dollar/U.S. dollar against the USD/Mexican peso, according to strategists at Société Générale.

    • 31 Jan 2012
  • Malaysia Relaxes Fx, Interest Rate Derivative Rules

    Malaysia’s central bank, Bank Negara Malaysia, is liberalizing its fx and interest rate derivatives markets.

    • 31 Jan 2012
  • HSBC Eyes Maiden Aussie Reverse Convert

    HSBC in Australia could issue partial capital protected reverse convertible structured products to domestic investors in the early second half of the year, a first for the firm in the country.

    • 31 Jan 2012
  • If the buck ain’t broke, don’t fix it

    US regulators rightly acted to boost money market funds’ resilience to shocks after the Reserve Primary Fund “broke the buck” in 2008. But given the funds’ performance during the crises of 2011, further risk reduction proposals are unnecessary and could be detrimental to regulators’ intentions.

    • 31 Jan 2012
  • How long-term is the LTRO?

    Moody's reckons the ECB's long term refinancing operation is credit negative for Europe's banks. It's hard to square this with the relief it is providing the sector, but the agency is right to warn of the dangers of relying on central bank funding.

    • 31 Jan 2012
  • Global Macro Funds Buy U.S. CDS

    Global macro-focused hedge funds were buying credit-default swaps on U.S. sovereign debt today.

    • 30 Jan 2012
  • BarCap Sees Brazilian Vol Value

    Investors eyeing equity dislocations should position themselves long volatility on the Bovespa Brazil Sao Paulo stock exchange index and short volatility on the Brazilian real/U.S. dollar cross, say strategists from Barclays Capital in New York.

    • 30 Jan 2012
  • BarCap Sees Brazilian Vol Value

    Investors eyeing equity dislocations should position themselves long volatility on the Bovespa Brazil Sao Paulo stock exchange index and short volatility on the Brazilian real/U.S. dollar cross, say strategists from Barclays Capital in New York.

    • 30 Jan 2012
  • CFTC OK’s SGX Futures Sales In U.S.

    The U.S. Commodity Futures Trading Commission has certified that U.S. investors can trade directly Singapore Exchange’s FTSE China A50 and MSCI Asia APEX 50 Futures contracts from the U.S.

    • 30 Jan 2012
  • Indian CCP May Be Three Years Away

    It may be three years before the Indian credit default swap market will be able to clear trades through a central counterparty, according to Siddartha Roy, chief risk officer at the Clearing Corp. of India.

    • 30 Jan 2012
  • Citi To Shutter Prop Desk

    Citigroup has announced it is closing its equity-principals strategies business, with most of its staff leaving Feb. 6.

    • 30 Jan 2012
  • Big Banks Lobby For CDS Exemption

    Five of the United States’ largest banks having been lobbying Congress to exempt their overseas operations from regulations under the Dodd-Frank Act.

    • 30 Jan 2012
  • Malaysia Moves To Spur Derivatives, FX

    Bank Negara Malaysia has announced a number of measures to spur growth of the domestic interest-rate derivatives and fx markets.

    • 30 Jan 2012
  • BofA Shakes Up I-Banking

    Bank of America has made changes that put Christian Meissner solely in charge of its global investment-banking business.

    • 30 Jan 2012
  • RBS Hires Hybrid-Capital Chief

    Royal Bank of Scotland has hired AJ Davidson as managing director and head of hybrid capital, covering the Europe, Middle East and Africa as well as Asia-Pacific regions.

    • 30 Jan 2012
  • Cowen Names Equities Co-Head

    Cowen Group has named Dan Charney as managing director and co-head of equities with Tom O’Mara.

    • 30 Jan 2012
  • UBS May Face Fine Over Unauthorized Trades

    The U.K.’s Financial Services Authority and the Swiss Financial Market Supervisory Authority may impose a penalty on UBS for oversight failures that led to costly unauthorized trades and some $2.3 billion in losses last year.

    • 30 Jan 2012
  • PIMCO Fund To Skip Derivatives

    Pacific Investment Management’s Total Return ETF Fund, due to debut March 1, will not invest in derivatives as the U.S. Securities and Exchange Commission has temporarily suspended approving any exchange-traded funds that are planning to use them.

    • 30 Jan 2012
  • FSA Taps Senior I-Banking Adviser

    The U.K.’s Financial Services Authority has appointed Will Samuel as investment-banking senior adviser. Samuel most recently was vice chairman of Lazard.

    • 30 Jan 2012
  • ESMA Pushes Ahead With Identifiers For UCITS ETFs

    UCITS exchange traded funds should use identifiers in their name, fund rules, prospectus and key investor information document when being marketed to investors, according to the latest consultation document from the European Securities and Markets Authority.

    • 30 Jan 2012
  • U.K. Wary Of E.U. OTC Plan

    The U.K.’s Financial Services Authority said it now supports a proposed European Union trading platform for over-the-counter derivatives, but expressed concern that without some modifications, the largest part of the derivatives market— namely, interest-rate swaps—could be adversely affected.

    • 30 Jan 2012
  • ICAP To Offer INR Fx E-Services

    ICAP is planning to offer Indian rupee-denominated fx swap and G10 spot forward electronic execution services to the domestic Indian market later this year.

    • 30 Jan 2012
  • Could Minimum CDS Block Size Hurt Transparency?

    If requirements for minimum block sizes for credit-default swaps are improperly gauged, firms could get a 30-minute window into large trades by taking advantage of overlapping laws requiring transparency and automatic sweeps from swap execution facilities.

    • 27 Jan 2012
  • One Year Ago In Derivatives Week 

    The Taiwan Financial Supervisory Commission was evaluating the creation of an over-the-counter derivative central counterparty. [The country has since focused on the creation of a trade repository, and has selected Gretai Securities Markets, the exchange and interest-rate and bond derivatives exchange, to house the repository. The plans for the repository, however, have been criticized by industry officials, arguing that reporting requirements in the country would be prohibitively expensive for the market and unworkable (DI, 8/9).]

    • 27 Jan 2012
  • “For one thing, central bank interventions can throw a wrench into how you trade a portfolio.”

    —Ron DiRusso, portfolio manager at FX Concepts, on the challenges facing hedge funds in the current environment.

    • 27 Jan 2012
  • Revisiting the Behaviour of Credit and Volatility

    Divergence in the joint behaviour of credit default swaps and volatility often gives an interesting insight into market expectation. Recently, we experienced another extreme divergence in Europe.

    • 27 Jan 2012
  • Japan Targets Crackdown On Funds That Use Derivatives

    Japan’s Financial Services Authority is exploring whether to impose stricter regulation on mutual funds that tout high-monthly distributions or use derivatives for fx-linked investments.

    • 27 Jan 2012
  • MS Relaunches Top Structured Product

    Morgan Stanley has reissued its FTSE Booster Plan 3 and FTSE Protected Growth Plan 46, the latter its most successful structured product.

    • 27 Jan 2012
  • German ETF To Invest In Derivatives

    The new ProShares German Sovereign/Sub-Sovereign ETF, which debuted Jan. 26, will invest in derivatives, debt securities and swap agreements among other instruments.

    • 27 Jan 2012
  • Nasdaq To Clear Non-Forward Deliverable FX In Europe

    Nasdaq has announced plans to begin clearing non-deliverable forward fx trades in Europe, directly competing with LCH.Clearnet and CME Clear Europe.

    • 27 Jan 2012
  • Union Group Seeks More Input On Derivatives

    The National Credit Union Administration has opened a 60-day comment period for additional input on a policy for allowing credit unions to trade in certain kinds of derivatives to protect against interest-rate risk.

    • 27 Jan 2012
  • E.U. To Object To U.S. About Volcker Rule

    Michel Barnier, the European Union’s commissioner of internal markets, said he plans to complain to U.S. Treasury Secretary Timothy Geithner when they meet next month that the proposed Volcker Rule could discourage banks from European sovereign bonds and boost funding costs in the region.

    • 27 Jan 2012
  • Credit Suisse CEO Won’t Get Derivatives-Linked Bonus

    Brady Dougan, ceo of Credit Suisse, is said to be not in line to receive bonds made from derivatives as a bonus, as other bankers are poised to be awarded, to avoid a conflict of interest.

    • 27 Jan 2012
  • SEC Hires ETF Expert

    The U.S. Securities and Exchange Commission has hired attorney Barry Pershkow as senior special counsel in its Investment Management Division.

    • 27 Jan 2012
  • Hedge Funds Re-Ignite Dispersion Plays

    Hedge funds have been buying up dispersion trades across several indices this week, driven by confidence on the back of stronger economic data in the U.S. and monetary measures in Europe.

    • 27 Jan 2012
  • EFG Expands Sales Team

    EFG Financial Products has expanded its structured products team with the appointment of two senior salesmen from Société Générale.

    • 27 Jan 2012
  • Greek Debt Negotiations Continue

    The negotiations for the appropriate haircut for private sector involvement in a voluntary Greek debt restructuring continue.

    • 26 Jan 2012
  • NYSE Chief Admits Misjudging Merger Process

    NYSE Euronext CEO Duncan Niederauer admitted that he misjudged the approach by European Union antitrust regulators to the proposed merger between his exchange and Deutsche Boerse, and conceded that there is little hope for its success.

    • 26 Jan 2012
  • House Panel Passes Derivatives Exemption

    The House Agriculture Committee has approved six bills relating to derivatives regulation in the Dodd-Frank Act.

    • 26 Jan 2012
  • CDS On European Sovereigns Tighten

    Credit default spreads on European sovereigns tightened an average of 10% in the past week, with those on Greece narrowing 22% on market reaction to debt-restructuring talks that may conclude with a near-term solution for the country’s debt woes, according to Fitch Solutions.

    • 26 Jan 2012
  • European Derivatives Reform Far Off

    Derivatives reform for Europe are still a long way off despite compromises announced earlier this week by the European Union.

    • 26 Jan 2012
  • Baird Hires MD To Expand I-Banking

    Baird has hired Paul Bail as managing director as part of its effort to expand its investment-banking staff in London and Frankfurt.

    • 26 Jan 2012
  • CDS On European Corporates At Five-Month Low

    Credit default spreads on European corporate debt narrowed to their lowest level since Oct. 28, according to Markit iTraxx indices.

    • 26 Jan 2012
  • Northern Rock Auction Set For Feb. 2

    The determinations committee of the International Swaps and Derivatives Association has set Feb. 2 for a credit settlement auction on the debt of Northern Rock Asset Management.

    • 26 Jan 2012
  • Plus Derivatives Names Biz-Development Head

    Plus Markets has hired Gavin Bridge as head of business development at PLUS Derivatives Exchange.

    • 26 Jan 2012
  • CME Steps Up Clearing In Europe

    CME Clearing Europe has cleared more than 5,6212 contracts since the beginning of 2012, more than half of the 9.447 it processed in its first eight months of operation, which began last May 6.

    • 26 Jan 2012
  • Cantor Expands Credit Fixed Income

    Cantor Fitzgerald has expanded its credit fixed-income team with the appointment of seven managing directors in its high-yield, investment grade and research groups.

    • 26 Jan 2012
  • Funds Buy Super Senior Tranche Protection

    Hedge funds and asset managers have been buying protection on super-senior tranches of the Markit iTraxx Europe main index this week because the price of the tranche is cheap relative to the index.

    • 26 Jan 2012
  • CS Launches Trigger Twin-Win

    Credit Suisse has launched so-called trigger twin-win certificates linked to the troy ounce of gold.

    • 26 Jan 2012
  • Structuring Shariah Compliance Derivative Master Class

    Modern Islamic finance remains in its infancy, having emerged only in the mid-1990s. Despite exceptional growth rates, Islamic finance is essentially devoid of derivatives products, in part due to doctrinal constraints and due in part to the infancy of the industry. In March of 2010, after years of effort, the International Swaps and Derivatives Association (ISDA) and International Islamic Financial Market (IIFM) released The 2010 Tahawwut Master Agreement for the standardized effectuation of certain swaps and derivative transactions that are compliant with the principles of Islamic Shariah

    • 26 Jan 2012
  • FX Concepts Eyes Increased Options In Overlay

    FX Concepts plans to increase the use of fx options in its currency overlay program, Ron DiRusso, portfolio manager in New York, told DI in an interview.

    • 25 Jan 2012
  • StormHarbour Hires Ex-Lloyds CEO

    StormHarbour has hired Eric Daniels, the ex-group chief executive of Lloyds Banking Group in London, as a principal and senior adviser.

    • 25 Jan 2012
  • Industry Groups To Try Again To Block CFTC Limits

    The Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association said they are planning to file for a preliminary junction with a federal District Court to block position-limit regulations adopted by the U.S. Commodity Futures Trading Commission.

    • 25 Jan 2012
  • Changes To Volcker May Be On Hold, Says Lawmaker

    Sen. Bob Corker (R-Tenn.) said any chance of lobbyists succeeding in their efforts to press for changes to the Volcker rule is slim due to it being an election year, making it a “non-year in Congress.”

    • 25 Jan 2012
  • U.K. Benefits From E.U. CCP Proposal

    The U.K. is seen as benefiting from the European Union’s draft legislation that drops the requirement that central counterparties be located within the Eurozone.

    • 25 Jan 2012
  • Barnier Gives Merging Bourses A Glimmer Of Hope

    Michel Barnier, the European Union’s commissioner for internal markets, is said to have given NYSE Euronext and Deutsche Boerse a glimmer of hope regarding their proposed merger, which currently seems to be on the road to rejection.

    • 25 Jan 2012
  • LaSalle Hires First Global Capital Markets Head

    London-based LaSalle Investment Management has hired John Zehner as its first global head of capital markets, effective March.

    • 25 Jan 2012
  • ESMA Seeks Comments On Short-Selling, CDS

    European Securities and Markets Authority has issued a consultation draft on technical standards for proposed regulation on short-selling and certain aspects of credit default swaps.

    • 25 Jan 2012
  • ICAP Threatens To Leave London Over Tax

    Broker-dealer ICAP would leave London and move to New York, if the U.K. agreed to adopt a financial transaction tax proposed by the European Union, said Michael Spencer, group ceo of the firm.

    • 25 Jan 2012
  • Bank Of Montreal Names U.S. ECM Chief

    Bank of Montreal has named Michael Cippoletti as head of U.S. equity capital markets.

    • 25 Jan 2012
  • Bill Aims To Close Derivatives Loophole

    Sen. Carl Levin (D-Mich.), chairman of the Senate Permanent Subcommittee on Investigations, has introduced the Close the Derivatives Blended Rate Loophole Act, which aims to end a loophole that allows traders in complex derivatives to claim long-term capital gains from short-term speculation.

    • 25 Jan 2012
  • Japan Trade Deficit Sparks Bearish JPY Plays

    Japan’s first annual trade deficit since 1980 has sparked a flurry of fx option trading taking the view the U.S. dollar will appreciate against the yen over the short- and long-term.

    • 25 Jan 2012
  • Effective Collateral Protection For Swaps

    In the Lehman Brothers collapse numerous market participants trading derivatives lost substantial amounts of initial margin they had posted to Lehman as a counterparty to secure their swaps.

    • 25 Jan 2012
  • CDS Trader Leaves SocGen

    Nahil Bayrasli, a New York credit derivatives trader at Société Générale, has left the firm.

    • 24 Jan 2012
  • OCC Chief Tackles Derivatives Criticism

    John Walsh, the Acting Comptroller of the Currency, said criticism of derivatives from the likes of Warren Buffett, who has called them “financial instruments of mass destruction” is a “vast overreaction,” and a worrisome misperception that “could motivate redesign of the system.”

    • 24 Jan 2012
  • CDS On U.S Corporate Debt Narrow For Fifth Day

    Credit default swap spreads on U.S. corporate debt narrowed for the fifth consecutive day on optimism that Europe may have a long-term plan to deal with the debt crisis.

    • 24 Jan 2012
  • E.U. Expected To Block Bourse Merger

    The European Union is expected to follow the recommendation of its Joaquin Almunia, its antitrust commissioner, and block the proposed merger of NYSE Euronext and Deutsche Boerse.

    • 24 Jan 2012
  • Calls For Overhaul Of Aussie Derivatives Regs Rejected

    The Australian government’s Corporate and Markets Advisory Committee has rejected calls for an overhaul to the country’s derivatives legislation, following a year-long review of the measure.

    • 24 Jan 2012
  • Invesco Perpetual Debuts Capital Fund

    Invesco Perpetual plans to launch its Global Financial Capital Fund Jan. 25.

    • 24 Jan 2012
  • MarkitSERV Starts Sending OTC Orders To DTCC

    MarkitSERV has begun transmitting confirmed trade records to the Depository Trust and Clearing Corp.’s new Global Trade Repository for over-the-counter interest rate derivatives.

    • 24 Jan 2012
  • Liberium Names U.S. I-Banking Head

    London-based Liberium Capital has named Mark Godridge as ceo of its U.S. operations in New York. Godridge most recently was head of European and emerging-market sales at JPMorgan Cazenove.

    • 24 Jan 2012
  • Law Firm Adds Energy/Derivatives Partners

    Law firm Sutherland Asbill & Brennan has hired David McIndoe and R. Michael Sweeny as energy/derivatives partners.

    • 24 Jan 2012
  • John Thomas Taps I-Banking Chief

    John Thomas Financial has hired Avi Merman as head of investment banking. Merman previously was head of investment banking at BMA Securities.

    • 24 Jan 2012
  • Tranter To Take New HSBC Top Slot

    Nick Tranter, most recently a partner and head of derivatives at Execution Noble in London, is to join HSBC as a managing director covering equities and asset managers in the firm’s financial institutions group in London. Tranter is set to join in a new role in the next few weeks.

    • 24 Jan 2012
  • Alternative Bonus Structures To Become The Norm

    A memo from Credit Suisse CEO Brady Dougan yesterday setting out alternative ways of paying a proportion of employee bonuses through a derivative-backed structured note had pulses racing among some in the investment banking community by the evening.

    • 24 Jan 2012
  • E.U. Ministers Strike OTC Override Deal

    Finance ministers of the European Union have reached a compromise deal on when E.U. regulators can override a member state in matters involving approval of over-the-counter derivatives clearinghouses.

    • 24 Jan 2012
  • Financial Services Technology Leaders Forum and Expo 2012

    SIFMA's Technology Leaders Forum and Expo is the premier financial services technology event covering the very latest in technology solutions, new regulatory and anticipated rulemaking, infrastructure changes and enhancements, and industry trends impacting your business. In 2012, the program will examine all of these issues and more by bringing you senior thought leaders and key industry experts to share their insight and answer your questions.

    • 24 Jan 2012
  • TradeTech Europe

    Our team of researchers has begun their in-depth analysis of the latest trends and challenges currently facing the trading community globally. We are working with hundreds of senior buy side traders, sales brokers, trading architects and solution providers to find the most interesting, innovative and relevant case studies, subjects for debate and speakers.

    • 24 Jan 2012
  • TradeTech Swaps and Derivatives

    TradeTech Swaps and Derivatives conference features 3 distinct streams of content; Trading, Technology and Clearing; allowing you to select the agenda that best meets your needs, while shared plenary sessions and plenty of networking time means that you can also meet with peers and colleagues from other areas of responsibility to resolve common challenges and share ideas.

    • 24 Jan 2012
  • IG CDX Draws Payer Option Interest

    Loan and credit value adjustment desks have been buying out-of-the-money payer options with March expiry on the Markit Group investment grade credit default index after the month-long tightening of the spread.

    • 23 Jan 2012
  • Low Vol Index Attracts Structurer Interest

    S&P Indices has licensed its Low Volatility Index to two dealer structured product desks who plan to issue structured notes on the back of the index, said Craig Lazzara, vice president at S&P in New York.

    • 23 Jan 2012
  • Credit Suisse Revives Derivatives-Bond Bonuses

    Credit Suisse has revived a practice it adopted during the financial crisis in 2008 of awarding senior employees part of their bonuses in derivatives-backed bonds, a practice that helped the Swiss firm to unload risky assets.

    • 23 Jan 2012
  • FINRA Issues Guidance On Complex Products

    The Financial Industry Regulatory Authority has issued guidance on the supervision of complex products, which may include those with “intricate derivative-like features.”

    • 23 Jan 2012
  • DTCC To Launch FX Swap Data Warehouse In Q2

    The Deposit Trust & Clearing Corp. said it is planning to launch its fx data repository in the second quarter.

    • 23 Jan 2012
  • OTC Derivatives Growth In Pakistan Slow

    The growth of over-the-counter derivatives in Pakistan has been slow as it confronts low-market awareness, low liquidity in the interbank market and illiquid market for some underlying instruments.

    • 23 Jan 2012
  • Appeals Court Tosses Industry’s CFTC Suit

    The U.S. Court of Appeals for the District of Columbia has dismissed a lawsuit filed by the Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association challenging regulations adopted by the U.S. Commodity Futures Trading Commission, ruling that the action needs to first be heard by a lower court.

    • 23 Jan 2012
  • SG’s Refusal To Clear Frustrates Dealers

    Broker dealers have expressed frustration over Société Générale’s apparent refusal to clear eligible credit default swaps through InterContinental Exchange’s ICE Clear.

    • 23 Jan 2012