Derivatives - All Articles

  • More time needed on variation margin, says ISDA

    Derivatives market participants should be given a relief period on variation margin rules after the slated March 1 deadline, the International Swaps and Derivatives Association has said, adding its voice to a rising clamour across the industry.

    • 31 Jan 2017
  • ESMA warns on derivs trade data transfer

    The European Securities and Markets Authority wants to standardise the way that trade repositories and market participants transfer data on derivatives obligations, having warned that problems could arise under the Markets in Financial Instruments Directive II (MiFID II) regulations.

    • 31 Jan 2017
  • TP ICAP makes data push with first buyout

    TP ICAP, the firm formed in the recent merger of Tullett Prebon and ICAP, has made its first acquisition with the addition of Burton-Taylor International Consulting to its data and analytics division.

    • 30 Jan 2017
  • Variation margin deadline must be delayed, says buy-side

    Pension funds and other buy-side institutions are not prepared to meet new variation margin rules expected to come into force on March 1. And if they cannot trade, the regulation is not worth the paper it is written on, delegates heard at a conference in Luxembourg last week.

    • 30 Jan 2017
  • Trump timebomb ticks but where is the vol?

    In an age of irony, financial markets are hitting their peak. Measures of volatility, across almost any asset suggest squeezed trading ranges and pricing exactitude just as the most volatile US president in living memory settles into his new job. Something has to give.

    • 26 Jan 2017
  • Credit and equity set to be stumped if anything brings surprises

    Credit and equity markets are “entirely unprepared” for volatility in the coming month, say traders, with any big surprises likely to wrong-foot swathes of market participants.

    • 26 Jan 2017
  • ESMA targets clearing as reg shift looms

    The European Union this week added to the sense that global derivatives market regulation is set for a shake-up, with the European Securities and Market Authority calling for changes to “third country” central counterparty treatment and for a softer stance on how some market participants adhere to clearing rules.

    • 26 Jan 2017
  • Deutsche Börse to build up blockchain for collateral transfer

    Deutsche Börse is working on a “collateralised coin” using blockchain technology, which it hopes could ease payments and the moves of collateral between the clearing members of its centralised counterparty (CCP), Eurex. The initiative follows closely on the heels of two earlier blockchain-inspired collaborative efforts that aim to ease cross-border collateral transfer and the securities settlement process.

    • 26 Jan 2017
  • Lloyds names top team for new look markets biz

    Following Lloyds Bank's creation of the "CB markets" division, combining trading with capital markets origination, James Garvey, the division’s boss, has laid out the management team for the new structure.

    • 26 Jan 2017
  • Eris Exchange makes moves to boost clearing

    Eris Exchange, the US based swap futures exchange, added to its clearing members this week and appointed a global business development head to bring on board critical support providers for clearing, order management and execution.

    • 25 Jan 2017
  • ERIS as ED&F Man as clearer

    ED&F Man Capital Markets, the financial brokerage business, has become the fifteenth clearing member of the ERIS Exchange.

    • 24 Jan 2017
  • ESMA voices concerns about CCP equivalence

    The chairman of the European Securities and Market Authority, Steven Maijoor, has complained of a mismatch in the treatment of EU central counterparties by other regulatory authorities versus that of overseas CCPs operating in the EU, at a time when a change of US regulatory direction appears imminent.

    • 24 Jan 2017
  • TP Icap finds replacement for COO Pigaga

    TP Icap, the interdealer brokerage arising from the recently merged Tullett Prebon and Icap, has made its first senior hire of the year, to replace chief operating officer Ken Pigaga, who is leaving.

    • 23 Jan 2017
  • Citi fined $25m for spoofing by Treasury traders

    The US Commodity Futures Trading Commission has settled a charge of spoofing in the US Treasury futures market with Citigroup, resulting in an order to pay a $25m civil monetary penalty.

    • 23 Jan 2017
  • EEX touts German and Swiss power contracts

    The European Energy Exchange is to introduce a German intraday floor futures contract as well as Swiss day and weekend futures contracts.

    • 19 Jan 2017
  • LCH.Clearnet gets US portfolio margining nod

    London based clearing house LCH made further inroads into the US this week, with the Commodity Futures Trading Commission (CFTC) giving LCH.Clearnet and its clearing members permission to portfolio margin customer positions.

    • 19 Jan 2017
  • Market dares to dream of margin reprieve from Giancarlo’s softer CFTC

    The derivatives market obtained its strongest sign yet that US regulations are soon to move in a more trading friendly direction, with J Christopher Giancarlo not only confirming that he is the acting chairman of the Commodity Futures Trading Commission but also indicating that he will soften rules governing variation margin posting and swap execution facilities.

    • 19 Jan 2017
  • Safeway breaks ranks from Brexit-hit retailers

    UK prime minister’s speeches have rarely been market-moving events, despite what some of the more breathless commentators in the broadcast media would have you think. But perhaps this has changed since the Brexit referendum in June, even if the spin doctors manage the message in advance.

    • 19 Jan 2017
  • Total Derivatives: Liquidity concerns back paying in CNY swaps

    Despite the PBoC having injected a record amount of funds into China's financial system this week, liquidity concerns are rising ahead of the Chinese New Year break. The fixings pushed higher and shorter NDIRS were well bid on Wednesday morning. Looking forward though sources see limited scope for further upside, writes Deirdre Yeung of Total Derivatives.

    • 19 Jan 2017
  • Nasdaq Dubai grows equity futures market

    Naeem Shares & Bonds (NSB) brokerage has become the seventh member of Nasdaq Dubai’s equity futures platform.

    • 18 Jan 2017
  • MOEX touts weekly options on Russian index

    The Moscow Exchange (MOEX) is to introduce a weekly expiry of options on the Russian Trading System (RTS) stock index.

    • 18 Jan 2017
  • DTCC names trade repository compliance head

    The Depository Trust & Clearing Corporation (DTCC) has appointed a head of compliance for its European Global Trade Repository (GTR) business.

    • 18 Jan 2017
  • KfW offers more backing for EM clearing guarantor

    KfW has invested more money in Frontclear, an organisation which offers guarantees to help clear emerging market and frontier market trades, boosting access to international interbank markets.

    • 18 Jan 2017
  • CBOE/Bats shareholders approve merger plan

    Plans for the Chicago Board Options Exchange to link up with Bats Global Markets took a big step forward this week, with both sets of shareholders approving the exchanges’ merger and a motion to issue shares supporting the deal.

    • 17 Jan 2017
  • EuroCCP to become SIX exchange clearer

    European Central Counterparty (EuroCCP) is to become the third central counterparty for clearing services on the SIX Swiss Exchange.

    • 17 Jan 2017
  • LCH.Clearnet get US portfolio margining nod

    The US Commodity Futures Trading Commission has given LCH.Clearnet and its clearing members permission to portfolio margin customer positions.

    • 16 Jan 2017
  • HKEX deploys derivs volatility control mechanism

    Hong Kong Exchanges and Clearing (HKEX) has gone live with a volatility control mechanism (VCM) on its derivative market to prevent extreme price volatility.

    • 16 Jan 2017
  • UniCredit tweaks senior trading team

    UniCredit has announced several changes to senior management in its markets business, with the retirement of corporate treasury sales boss and deputy head of markets Kevin Krespi.

    • 16 Jan 2017
  • Pegas offers time spread trading

    Pegas the European gas trading platform operated by Powernext has launched time spread contracts on its futures markets.

    • 13 Jan 2017
  • CFTC allows US traders access to ICE Endex

    The US Commodity Futures Trading Commission has issued an order of registration for Intercontinental Exchange's ICE Endex exchange, allowing participation by US based investors.

    • 13 Jan 2017
  • Turkey and New Zealand gain EU reg equivalence

    Supervisory and regulatory frameworks in Turkey and New Zealand can be regarded as equivalent to those in the European Union, according to details of a European Commission report released by the European Banking Authority.

    • 13 Jan 2017
  • Mizuho hires European derivs risk head

    Mizuho International, the securities and investment banking arm of Mizuho Financial Group, has hired an experienced banker to lead its European derivatives risk solutions business.

    • 12 Jan 2017
  • Swaps clearing fight reignited as Draghi and Massad wade in

    Wrangles over the future of euro interest rate swap clearing after Brexit were revived this week, with both European Central Bank president Mario Draghi and outgoing US Commodity Futures Trading Commission chair Timothy Massad suggesting that the EU should maintain oversight of the UK market. Meanwhile, two London-based executives argued that the UK should extend its EU exit process to five years to avoid losing swaps business to the US.

    • 11 Jan 2017
  • Tradeweb touts APA service for MiFID II

    Tradeweb Markets, the New York based electronic fixed income, derivatives and exchange-traded fund marketplace operator, has unveiled a service that allows market participants to meet post-trade transparency requirements mandated by the Markets in Financial Instruments Directive II (MiFID II).

    • 11 Jan 2017
  • Thai exchange adds stock futures to fuel growth

    The Thailand Futures Exchange (TFEX), which enjoyed a 72% growth in trade volume last year, is set to add futures on 24 stocks.

    • 11 Jan 2017
  • Derivs industry weighs cost of ISIN numbers

    The Association of National Numbering Agencies (ANNA) has issued a consultation paper on the fees that will be payable after the introduction of ISIN numbers for over-the-counter derivatives.

    • 10 Jan 2017
  • Nodal Exchange launches power futures

    The Nodal Exchange, a North American energy derivatives market place, has introduced Mid-Columbia power futures contracts.

    • 10 Jan 2017
  • IHS Markit touts US equity derivs tax tool

    IHS Markit has unveiled a solution aimed at helping market participants meet withholding tax obligations on US equity derivatives arising from the newly imposed section 871(m) rule.

    • 10 Jan 2017
  • CME consults on rules overhaul

    CME Europe is consulting with the derivatives market, having proposed to overhaul its exchange rulebook following reauthorisation under the European Markets Infrastructure Regulation (EMIR).

    • 09 Jan 2017
  • From theory to reality: DTCC takes blockchain into trade warehouse

    Use of blockchain technology in the derivatives market progressed beyond the proof of concept (POC) phase this week, with the Depository Trust & Clearing Corporation (DTCC) moving to take distributed ledger into the heart of its operation.

    • 09 Jan 2017
  • This week in renminbi: January 9, 2017

    The People’s Bank of China (PBoC) went into reverse gear on Monday, weakening the dollar fix by 0.9%, China’s foreign currency reserves cling on to the $3tr level, and Shenzhen Connect sees slow but steady foreign interest.

    • 09 Jan 2017
  • Eurex adapts VStoxx to attract US traders

    Eurex will introduce CFTC-certified options on its VStoxx futures contract as it aims to increase US participation in the product.

    • 06 Jan 2017
  • RMB round-up: RMB surges against dollar, CNH futures set new trading record, Zhejiang FTZ gets going

    The year started with plenty of excitement, as the RMB gained ground against the dollar in onshore and offshore markets, activity surged in RMB futures in Hong Kong, and the third batch of free trade zones (FTZ) opened for business. Plus, a recap of our coverage.

    • 06 Jan 2017
  • Market cheers as Giancarlo tipped to chair CFTC

    Timothy Massad, chairman of the US Commodity Futures Trading Commission, has resigned, with J Christopher Giancarlo widely expected to take up the job, fuelling hopes of a more flexible, market friendly approach to regulation.

    • 05 Jan 2017
  • CME adds monthly expiries to currency futures

    CME Group is set to introduce six currency futures with monthly expiries.

    • 05 Jan 2017
  • Credit intrepid as year of uncertainty begins

    John Maynard Keynes said we live in a world of irreducible uncertainty, while neoclassical economists assume that perfect information is available and people have rational expectations. The events of the past decade suggest that the former school of thought has more credence, though “freshwater” economists would no doubt disagree.

    • 05 Jan 2017
  • Politics and margin drive growth year for exchanges

    Major derivatives exchanges have released figures showing growth over 2016 and in December, with big gains reported in some product lines.

    • 05 Jan 2017
  • Hong Kong to trade renminbi currency options

    Hong Kong Exchanges and Clearing (HKEX) plans to introduce options on the Chinese renminbi currency, as well as a US dollar/offshore renminbi contract, having gained approval from the Securities and Futures Commission of Hong Kong.

    • 04 Jan 2017
  • Giancarlo tipped for CFTC chair as Massad resigns

    Timothy Massad, chairman of the US Commodity Futures Trading Commission, has resigned, with Republican commissioner J. Christopher Giancarlo widely expected to take up the job.

    • 04 Jan 2017
  • Petro-renminbi to test dollar dominance in 2017, says Amundi

    The next chapter of the renminbi internationalisation process could soon be taking place in the commodities market with Amundi Asset Management predicting the rise of petro-renminbi in 2017.

    • 04 Jan 2017
  • Boost for LSE/DB merger as Euronext agrees LCH SA buyout

    The plans of London Stock Exchange Group and Deutsche Börse to pursue a merger of equals received a boost this week, as rival exchange Euronext agreed terms with the LSEG to buy its Paris clearing house business LCH SA in an all cash offer.

    • 03 Jan 2017
  • Jain to join Cantor Fitzgerald

    Anshu Jain, former co-chief executive of Deutsche Bank, is joining Cantor Fitzgerald as president.

    • 03 Jan 2017
  • Tensions high as cross-currency swaps face testing 2017

    Cross-currency swap markets face a rough start to 2017. Traders fear that diverging central bank policy, a shift in corporate borrowing dynamics and a repatriation of US money will all upset the basis at different parts of the curve. Dan Alderson reports.

    • 01 Jan 2017
  • Brexit: a regulatory triumph?

    The Brexit vote and the election of Donald Trump laid bare the poor predictive power of the massed ranks of financial analysts and traders. But when these political cataclysms hit the screens, nothing broke. Everyone from the IMF down to the lowest financial scribbler has warned that markets are less resilient thanks to regulation — but in the turmoil following these votes, prices moved but institutions stayed solid. Owen Sanderson reports.

    • 01 Jan 2017
  • Derivs trading reinvented as investors look to trump event risk

    The upending of global financial markets in the second half of 2016, driven by shocks from the UK’s Brexit vote and US presidential election, has caused a breakdown in previously dominant cross-asset correlations and a sharp resizing of event risk in 2017. Dan Alderson reports on a wave of structured product innovation aimed at navigating this new and more volatile universe.

    • 01 Jan 2017
  • Link still missing in blockchain's capital markets drive

    In 2016, blockchain went from a buzzword to a ‘must have’ in financial markets, as seemingly every bank and exchange invested in projects and proofs-of-concept. But with so many asset classes having been promised big gains, 2017 begins with a dose of realism about the limits of the technology — and the challenges it poses for regulators. Dan Alderson reports.

    • 01 Jan 2017