Derivatives - All Articles

  • Volatility climbs up to 15% as S&P 500 loses its footing

    Volatility on the S&P 500 has surged to its highest point since last August as the US blue-chip index briefly halted its climb upwards this week.

    • 31 Jan 2018
  • CFTC whacks $47m fine on UBS, HSBC, Deutsche

    The US Commodity Futures Trading Commission (CTFC) brought in a $46.6m haul on Monday after filing and settling spoofing charges against UBS, HSBC and Deutsche Bank.

    • 30 Jan 2018
  • Lords urge UK government to 'resist' CCP relocation

    A report published by the UK House of Lords on Saturday encouraged the government to “resist” new European Commission measures to relocate systemically important clearing houses in London to EU member states.

    • 29 Jan 2018
  • GlobalCapital Americas Derivatives Awards 2018: the nominees

    GlobalCapital is pleased to announce the nominees for this year’s Americas Derivatives Awards.

    • 29 Jan 2018
  • Rates worries drive record Eurodollar interest on CME

    The Chicago Mercantile Exchange Group on Wednesday said that it had seen record open interest for Eurodollar futures, at 14.5m contracts, partially attributing the move to hedging for potential Fed rate hikes.

    • 26 Jan 2018
  • CDS market’s euro optimism has caveats

    It’s that time of year again, when plutocrats and power brokers meet in Davos for the World Economic Forum.

    • 25 Jan 2018
  • EU member states put CCP resolution file in waiting mode

    European Union member states in the process of thrashing out legislation on central counterparty clearing house (CCP) resolution procedures have put their negotiations on ice, as the project is contingent on a separate file that is still unresolved.

    • 25 Jan 2018
  • FIA and ISDA: let national regulators do their jobs

    Two influential derivatives trade bodies have questioned elements of a European Commission proposal that would centralise supervisory powers with pan-European securities watchdog ESMA, arguing that national supervisors have a “strong knowledge of local markets” and that the move seemed “premature”.

    • 25 Jan 2018
  • HSBC hires credit trader

    Former Citi credit trader James Duffy will be joining HSBC in London to trade financials single name credit default swaps.

    • 24 Jan 2018
  • ISDA appoints MetLife derivs expert

    Jason Manske, the chief hedging officer and head of global derivatives and liquid markets at insurance giant MetLife, has joined the International Swaps and Derivatives Association's board of directors.

    • 24 Jan 2018
  • Options surge as futures falter in new data

    Options volumes were up 11% in exchanges around the world last year, while futures were down 6.6%, according to new data unveiled by the Futures Industry Association.

    • 24 Jan 2018
  • US regulators toughen cryptocurrency stance

    The Securities and Exchange Commission and the Commodity Futures Trading Commission have hardened their stances on cryptocurrency markets, amid wider market concerns about initial coin offerings and the launch of bitcoin futures.

    • 23 Jan 2018
  • Survey shines light on 3.29m index tally

    The Index Industry Association on Monday revealed that its members administered about 3.29m indices around the world, with more than 95% of those referencing equities.

    • 22 Jan 2018
  • TAIFEX caters to SMEs with new FX futures

    Taiwan Futures Exchange (TAIFEX) on Monday released two new foreign exchange futures to cater to small and medium-sized enterprises, as the exchange pivots towards FX derivatives.

    • 22 Jan 2018
  • SEC slaps down crypto ETFs, for now

    The US Securities and Exchange Commission on Thursday slapped down the possibility of new cryptocurrency exchange traded funds until “significant outstanding questions” were answered with regards to investor protections.

    • 19 Jan 2018
  • How Trump broke the repo market

    Banks tried to prevent a repeat of 2016 year-end collateral market chaos but trading choked on huge spreads again. And this time, it was for a reason unexpected: Trump.

    • 18 Jan 2018
  • ESMA ponders crypto CFD ban, consults on complex retail derivs

    The European Securities and Markets Authority on Thursday kept up the pressure on providers of complex retail derivatives products by announcing a short consultation on crack-down measures, including a potential ban on cryptocurrency contracts for difference.

    • 18 Jan 2018
  • Ex-Barclays FX head indicted for front-running

    Barclays’s former New York head of FX trading, Robert Bogucki, was charged this week with allegedly “front-running” a £6bn options trade to be executed by technology company Hewlett-Packard in 2011.

    • 17 Jan 2018
  • Carillion loan was hedged in HSBC CLO

    HSBC hedged part of its lending to Carillion in a synthetic CLO, Metrix 2015-1, with the latter company’s liquidation announcement on Monday triggering a credit event in the portfolio.

    • 17 Jan 2018
  • Planning for the fall: what a cryptocrash would look like

    Bitcoin has, since its creation, been a wild ride. Volatility is part of its charm — after all, where else do you get more than 1,500% growth in a year? But if, or when, it crashes for good, how would it play out?

    • 16 Jan 2018
  • BNPP likes Europe, but US keeps winning

    As global stock markets soar into 2018, BNP Paribas is finding value in eurozone companies' stocks, which look relatively cheap compared with the US.

    • 16 Jan 2018
  • Derivatives Service Bureau still missing venues

    The cost split of using the Derivatives Service Bureau has finally been released but some trading venues are still absent from its fee structure.

    • 15 Jan 2018
  • Nomura rejigs fixed income in a global way

    Nomura has promoted several of its senior fixed income traders, giving out global responsibilities to seven individuals.

    • 15 Jan 2018
  • SGX ready to give no quarter

    In the latest Clawback, columnist Philippe Espinasse puts the Singapore Exchange's proposal on quarterly reporting by companies under the microscope.

    • 15 Jan 2018
  • Strategists cautiously bullish on US and European equities

    Equity derivatives strategists are bullish on equities in the short term as European business confidence is high and US markets bask in the afterglow of tax reform passed by President Donald Trump. But questions remain over how long the US equity bull run can continue, with some experts encouraging more cautious long positions this year.

    • 11 Jan 2018
  • Year of TLAC opens novel questions for CDS market

    In our last article of 2017 we noted that it was widely billed as the year of political risk. Perhaps those in the fixed income world will call 2018 the year of TLAC (total loss absorbing capacity).

    • 11 Jan 2018
  • ESMA voices concern over trade repository fees

    The European Securities and Markets Authority (ESMA) has gone public with its concerns over the fees that trade repositories charge their clients and made recommendations for change.

    • 11 Jan 2018
  • FCA reaches for the unregulated through trade bodies

    From February, the UK Financial Conduct Authority (FCA) might be able to ban or impose fines on anyone doing business in unregulated markets if they break codes of best practice — codes that might have been written almost anywhere or by anyone.

    • 11 Jan 2018
  • Bulgarian stock ETF comes to Deutsche Boerse through Expat

    Expat Asset Management has joined German exchange group Deutsche Boerse as a new exchange traded fund issuer, debuting with an ETF that provides exposure to Bulgarian stocks.

    • 10 Jan 2018
  • US senators add to warnings on EC's CCP plans

    Two US senators have scolded the European Commission's efforts to unilaterally change agreed rules for the oversight of foreign clearing houses in the wake of Brexit, backing the toughening position of Commodity Futures Trading Commission chairman Christopher Giancarlo.

    • 10 Jan 2018
  • ISDA preps French, Irish master agreements

    Chief executive of the International Swaps and Derivatives Association (ISDA) Scott O’Malia on Monday said that the trade body was preparing French and Irish law governed ISDA master agreements to be “ready for all eventualities” in the wake of Brexit.

    • 09 Jan 2018
  • ICBC Standard Bank appoints new COO

    ICBC Standard Bank has appointed Gary Simpson, a former HSBC banker, as chief operating officer of global markets, a newly created role.

    • 09 Jan 2018
  • TOPIX futures hitting CME in February

    Chicago Mercantile Exchange Group (CME) and Japan Exchange Group (JPX) on Monday announced that Yen-denominated Tokyo Stock Price Index (TOPIX) futures would launch on CME’s Globex platform on February 5.

    • 09 Jan 2018
  • FCA fines former RBS trader £250,000

    A former interest rate derivatives trader at Royal Bank of Scotland, Neil Danziger, was fined £250,000 by the Financial Conduct Authority on Monday for allegedly trying to manipulate Libor.

    • 08 Jan 2018
  • ESMA: CCPs should disclose their margin models

    The European Securities and Markets Authority (ESMA) on Monday issued a consultation on draft guidelines that would oblige central counterparties (CCPs) to disclose “parameters and information” on the way they calculate margin requirements for trades.

    • 08 Jan 2018
  • CFTC opens the floor for virtual currency discussion

    With all the excitement around bitcoin and its introduction into established futures markets at the end of 2017, it is perhaps not surprising that the US Commodity Futures Trading Commission’s first public order of business in 2018 has addressed those markets.

    • 05 Jan 2018
  • UBS trader fights Libor ban in High Court

    Arif Hussein, a former rates trader involved in the Libor rigging scandal at UBS, faced the Upper Tribunal this week to argue against his ban from working in the City, saying he had just been following orders. Following the UK’s introduction of the Senior Managers Regime in 2016, any similar scandal would play out very differently today.

    • 04 Jan 2018
  • Prophecies of ISIN-geddon yet to materialise under MiFID II

    After much heated debate, the Derivatives Service Bureau (DSB), which generates international securities identification numbers for some over the counter derivatives, seems to have successfully navigated the first week of the Markets in Financial Instruments Directive’s second coming.

    • 04 Jan 2018
  • IHS Markit appoints new CEO and board members

    IHS Markit on Wednesday announced that Lord Browne of Madingley and Nicoletta Giadrossi have joined as board directors of the company, while its president and COO Lance Uggla became CEO on January 1.

    • 04 Jan 2018
  • Derivatives: Deal-contingent hedgers set sights on infrastructure

    Deal-contingent products — flexible derivatives for hedging the FX risk of cross-border acquisitions — are moving from the private equity industry to other markets. Infrastructure is considered a prime fit for the tool. But tricky accounting standards and incoming regulation could complicate the instruments’ roll-out to new users, writes Ross Lancaster.

    • 03 Jan 2018
  • Derivatives: Asset managers catch on to risk premia strategies

    With yields compressed and equity volatility at a historically low level, hunting for consistent returns has been a challenge for asset managers and institutional investors alike. But as Costas Mourselas reports, the meteoric rise of risk premia strategy, a type of passive investing, promises to at least partially alleviate those woes.

    • 03 Jan 2018
  • Theme for 2018: Survival of the fittest as MiFID II burdens derivatives players

    Five years after being pushed on to trading venues in the US by the Dodd-Frank Act, over-the-counter derivatives players are beating a similar path in Europe, under the Markets in Financial Instruments Directive II. Most people think MiFID II has been a worse experience, and will make it harder for small players. But efficiency gains may follow. Ross Lancaster reports.

    • 03 Jan 2018
  • Theme for 2018: Debt and derivatives players set out on long road away from Libor

    It is six months since Andrew Bailey, head of the UK financial regulator, set the clock ticking on a transition from the London interbank offered rate to an alternative. But if credible replacements are to be ready by his 2021 deadline, there is still a mountain of work to do. Ross Lancaster explores the risks of phasing out the old benchmark and asks if it could yet survive.

    • 03 Jan 2018
  • UniCredit hires sales head from Créd Ag

    UniCredit has hired a senior Crédit Agricole banker as head of markets sales.

    • 03 Jan 2018
  • LSE trumpets open access as Eurex, ICE step away

    The London Stock Exchange this week reaffirmed its commitment to open access under the second Markets in Financial Instruments Directive, as major European exchanges and clearing houses (CCPs) were granted exemptions from the requirement until July 3 2020.

    • 03 Jan 2018
  • LCH and Euronext finalise awaited share-swap

    LCH Group and pan-European exchange Euronext have revealed their completion of a share swap, in which the exchange took a 2.3% stake in LCH Group in return for an 11.1% stake in France-based clearing house LCH SA.

    • 02 Jan 2018
  • ICE bags Virtu Bondpoint trading platform for $400m

    Intercontinental Exchange on Tuesday announced that it had completed its acquisition of fixed income trading platform BondPoint from specialist liquidity provider Virtu Financial for $400m.

    • 02 Jan 2018
  • Disruptive technology ETF comes to CBOE

    Exchange-traded fund provider ALPS has joined CBOE Global Markets as a new issuer, bringing a new technology-focused ETF to the table last Friday.

    • 02 Jan 2018