Derivatives - All Articles

  • Cross-currency swaps headache looms in Ibor transition

    As clear daylight emerges between jurisdictions making their transitions away from Ibor benchmarks, the cross-currency basis swap market could become a headache.

    • 27 Feb 2020
  • BoE ‘turbo charges’ post-Libor transition with plans for index and ramped-up haircuts

    The Bank of England turned up the heat on Libor this week with plans to publish a compounded Sonia index and averages in a move that will drive the transition to the new risk-free rate with a simpler coupon calculation methodology. It will also increase haircuts on Libor-linked collateral which is intended to accelerate the switch out of Libor FRNs maturing after 2021.

    • 27 Feb 2020
  • ICAP accelerates equity strategy with European special situations desk

    ICAP is expanding its presence in the special situations market. On Thursday, the interdealer broker said it will open a European desk for the equities sub-division.

    • 27 Feb 2020
  • Bank of England lays out plans to publish compounded Sonia averages and index

    The Bank of England has said it intends to publish compounded Sonia averages and a Sonia index using a ‘shift’ calculation method by the end of July, subject to feedback on a series of questions it has asked sterling market participants. This follows the first deal using that method from the European Bank for Reconstruction and Development Bank last week.

    • 26 Feb 2020
  • Tradition adds dealer and client to new swaps Clob

    Tradition’s rates trading platform, Trad-X, has signed up Commerzbank and DekaBank to its new dealer-to-client central limit order book (Clob) and has 12 more firms in the pipeline.

    • 25 Feb 2020
  • Eurex hires from platform for buy-side clearing push

    Eurex Clearing has hired Nick Barnes from MarketAxess to expand its buy-side presence.

    • 24 Feb 2020
  • Ferber lashes out at ESMA for Ophèle appointment

    MEP Markus Ferber has come out swinging at the European Securities and Markets Authority for appointing chief French regulator Robert Ophèle to temporarily chair its central counterparty (CCP) supervisory committee.

    • 24 Feb 2020
  • Swaptions at risk in €STR transition, warns ECB working group

    The European Central Bank’s private sector working group on euro risk-free rates has recommended market participants replace Eonia products with €STR-referencing derivatives “as soon as possible” and flagged a threat to swaptions in the transition.

    • 20 Feb 2020
  • Battle over high stakes position limits coming as EC reopens commodity derivs question

    A politically charged fight over position limits on commodity derivatives appears set to kick off after the European Commission opened a consultation on the second Markets in Financial Instruments Directive (MiFID II) this week.

    • 20 Feb 2020
  • LCH adds subordinated financials to credit suite

    LCH’s credit derivatives arm, CDS Clear, has become the first central counterparty (CCP) clearing house to offer clearing of single-name subordinated financials credit default swaps (CDSs).

    • 20 Feb 2020
  • Natixis sparks Gallois to lead investment banking

    Alain Gallois will become Natixis’s global head of investment banking, replacing Mohamed Kallala. The latter is heading over to run global markets, with that role’s incumbent, Luc François, leaving the bank.

    • 20 Feb 2020
  • Open interest hits record high in energy as ICE preps new oil service

    The Intercontinental Exchange (ICE) has hit record open interest in futures and options on oil and natural gas, as it also readies a data platform for oil markets.

    • 19 Feb 2020
  • Quantile sales chief leaves, old firm breaks rates record

    Ian Hunt, global head of sales at Quantile Technologies, has left the firm. This week the compression provider firm broke its own record in a euro rates run.

    • 18 Feb 2020
  • Lloyds puts credit sales head Paterson at risk

    Lloyds Bank has put credit sales head Bob Paterson at risk, a securitization specialist who had been leading sales on the bank’s risk transfer programmes.

    • 18 Feb 2020
  • HSBC plans to slim down rates, derivs, equities in Europe

    HSBC’s new strategic plan involves numerous changes to its investment banking division, including shifting resources to Asia and the Middle East, reducing the scale of many operations in the European markets business, and combining product functions with commercial banking.

    • 18 Feb 2020
  • European Commission opens MiFID II consultation

    The European Commission has opened a public consultation on MiFIR/MiFID II, as it takes stock of two years of the sweeping regulations.

    • 17 Feb 2020
  • Lyxor launches second suite of ESG high yield ETFs

    Lyxor has launched a suite of environmental, social and governance high yield exchange-traded funds, following BlackRock’s iShares into the burgeoning market for investment products screened for sustainability. The French firm switched its investment grade ETF to follow a sustainable index last year, but opted to create a new product line for high yield.

    • 13 Feb 2020
  • CFTC’s Behnam urges action on Libor fallbacks

    US Commodity Futures Trading Commission (CFTC) commissioner Rostin Behnam has added his voice to the growing clamour for derivatives market participants to find a solution to fallback issues as they transition away from Libor.

    • 13 Feb 2020
  • Learning Curve – Trading dividends as an asset class

    In a negative interest rates environment, dividend strategies are becoming increasingly popular as a way to create positive yield for investors.

    • 13 Feb 2020
  • BoE’s Woods ‘cautiously optimistic’ on EU-UK clearing agreement

    Sam Woods, deputy governor at the Bank of England and chief executive of the Prudential Regulatory Authority, this week said he expects an equivalence agreement between the European Union and the UK to be extended beyond September, as both sides want to avoid a “dramatic” fallout.

    • 12 Feb 2020
  • ECB finds market making decline for OTC derivatives

    A European Central Bank (ECB) survey has found that market making in over-the-counter (OTC) derivatives decreased last year, but respondents were confident of their ability to support the products during bouts of market stress.

    • 11 Feb 2020
  • Eurex ratchets up ESG derivatives with US product

    Eurex is pushing its environmental, social and governance (ESG) derivatives offering to cover the US, as it works to build a global market in the new futures.

    • 10 Feb 2020
  • Santander scores solution for costly undrawn revolver exposures

    Santander has bought credit protection on two portfolios of undrawn revolving credit facilities, taking advantage of a regulatory decision last year to sharply boost the efficiency of the protection. The deal points the way for banks to cut the costs of providing revolvers, which are usually extended as a ‘loss leader’ for a broader banking relationship.

    • 10 Feb 2020
  • ISDA reopens divided pre-cessation consultation after regulator clarity

    The International Swaps and Derivatives Association this week said it will make another attempt to finally find industry consensus on a solution to fallback issues in the Libor transition.

    • 06 Feb 2020
  • Robo-brokers in the pipeline as AiX moves to upend IDBs with AI

    Interdealer brokers are facing potential disruption after a new platform, AiX, announced its intention this week to compete for their fees with artificial intelligence technology that aims to replace some of the functions of human brokers.

    • 06 Feb 2020
  • People moves in brief: February 7, 2020

    HSBC picks regional bosses ahead of expected restructuring — Mizho goes on fixed income hiring spree — Bank of America appoints head of rates trading

    • 06 Feb 2020
  • SG keeps lid on costs after restructuring

    Société Générale grew revenues while keeping costs steady in its markets and investor services activities in the fourth quarter. Bondholders will have also welcomed a boost to the bank’s capital ratio.

    • 06 Feb 2020
  • EBA plans to clear up risk transfer tests

    The European Banking Authority will be consulting on its approach to risk transfer by the end of the second quarter, with the treatment of excess spread likely to be a crucial topic for issuers and investors in the securitization market.

    • 06 Feb 2020
  • Dray takes on new global role for BNPP EQD

    BNP Paribas has created a global leadership role for its equity derivatives trading division, appointing Emmanuel Dray to the position.

    • 06 Feb 2020
  • AI firm makes push into OTC interdealer markets

    Robots are going up against humans in the OTC broking markets as AiX announced the launch of its natural language artificial intelligence broker platform this week.

    • 05 Feb 2020
  • BNP Paribas expects CIB growth in 2020

    BNP Paribas expects to buck the trend of malaise at European investment banks and grow its revenues this year, it said in its fourth quarter results on Wednesday.

    • 05 Feb 2020
  • SEBI opens doors for offshore FX derivatives trading

    The Securities and Exchange Board of India (SEBI) has given the go-ahead for trading in rupee futures and options, allowing the development of offshore markets in the products.

    • 04 Feb 2020
  • Mizuho makes swathe of fixed income hires

    Mizuho International has hired nine bankers for roles across emerging markets trading and sales, rates, options, securitised products and credit sales and trading. Among the hires, the bank has found a new head of MTNs and appointed a senior emerging markets trader from BNP Paribas.

    • 04 Feb 2020
  • BofA makes Gilts trader head of rates

    Bank of America has appointed Snigdha Singh to head up its rates trading team for Europe, the Middle East and Africa.

    • 03 Feb 2020