Derivatives - All Articles

  • CME launches micro options after futures success

    CME Group has marked autumn 2020 for the launch of options that reference its Micro E-mini S&P 500 and Micro E-mini Nasdaq 100 futures.

    • 28 May 2020
  • Fixed income structured products offer sturdy contrast to equity gloom

    The structured products market may have suffered dramatic blow-ups in the equity market, but investors have supported the less well publicised fixed income corner of the market.

    • 28 May 2020
  • HKEX nabs MSCI contracts, with SGX agreement due to lapse

    Hong Kong Exchanges and Clearing (HKEX) won a licensing agreement this week to list 37 MSCI equity index futures and options contracts, as the index provider agreed to wind down its partnership with rival Singapore Exchange (SGX).

    • 28 May 2020
  • Out for the shout: Cboe prepares for return to open outcry

    Cboe Global Markets will reopen its open-outcry options trading floor at the beginning of June, after more than two months in which the world’s major derivatives exchanges have operated exclusively electronically.

    • 27 May 2020
  • Crisis Talk — Carson Block, CIO of Muddy Waters: ‘If capitalism breaks, it’s capitalists who broke it’

    Muddy Waters has fostered a fearsome reputation as a credible, thorough and forceful short seller whose explosive reports are a danger to anyone harbouring a stake in its intended target. Carson Block, its founder and chief investment officer, told GlobalCapital he has never been wrong about a company he’s shorted, though that doesn’t mean he’s made money from every position he has held. According to Block, monetary policies intended to stimulate markets through financial crises actually corrode them, and stifle accountability for serious failures in corporate governance.

    • 27 May 2020
  • Leech and Sandoz move up at Barclays to replace Belbachir

    Barclays has made Paul Leech and Todd Sandoz interim co-heads of global equities, after Fater Belbachir was hired by Citi.

    • 22 May 2020
  • More flex likely on IM as CFTC committee votes for new waiver

    The US Commodity Futures Trading Commission’s global markets advisory committee, a steering group made up of market participants, has recommended that the regulator provide a further six month grace period for compliance with initial margin requirements.

    • 21 May 2020
  • WisdomTree pulls oil ETPs after Shell spikes swap agreement

    WisdomTree Investments, an exchange traded product sponsor and issuer, has pulled nine of its products after its counterparty on an underlying swap terminated the contract.

    • 21 May 2020
  • Crisis Talk — with Dan Zwirn of Arena Investors

    In the special situations arena there are few situations quite as special as a global pandemic, and few opportunities quite as large for investment firms that manage to navigate the sell-off in corporate credit, bank loans, CLOs and securitizations correctly. GlobalCapital spoke to Dan Zwirn, founder, CEO and CIO of Arena Investors, and a 25 year veteran of distressed debt and special situations investing about buying free volatility, where to play in retail, and why the CLO market has much further to fall.

    • 21 May 2020
  • Turkey bids for time with boosted swap line

    After a week of speculation over which central banks would provide Turkey with a currency swap line, its central bank has announced an increase to an existing arrangement.

    • 20 May 2020
  • AMF pulls back on shorting ban as Covid vol calms

    The Autorité de Marchés Financieres (AMF) has decided not to lengthen a ban on short selling, but some market participants who opposed the action see it returning when extreme volatility next strikes the markets.

    • 18 May 2020
  • Short selling ban nears expiry, could yet be extended

    France's Financial Markets Authority (AMF) is weighing whether or not to extend a ban on short selling this week, as industry bodies warned the ban has harmed markets.

    • 15 May 2020
  • CFTC warns market to be ready for negative oil return

    As the June West Texas Intermediate crude oil futures contract’s expiry nears, the US Commodity and Futures Trading Commission has warned trading venues, clearinghouses and futures commission merchants that negative commodities futures prices could return.

    • 14 May 2020
  • Skytra picks Nasdaq for clearing airline hedges

    Airbus subsidiary Skytra has picked Nasdaq Clearing as the clearing house for its derivatives trading platform, which will offer airlines the ability to hedge revenue risk. With the industry in crisis, Skytra’s COO says there is more interest in the offering than ever.

    • 13 May 2020
  • Crisis Talk — with Christophe Salmon, CFO of Trafigura, on hedging oil’s biggest crash

    As a crucial middleman in the oil business, Trafigura has had to cope with concerns about the creditworthiness of some of its counterparts, and unprecedented volatility in the oil price that saw the West Texas Intermediate (WTI) contract turn negative at the end of April. Christophe Salmon, the company’s chief financial officer, explained how the company has coped with the crisis, and how its funding approach, based on deep banking relationships and a secured financing structure, proved resilient to the chaos around it.

    • 13 May 2020
  • BIS raises CCP margin questions after Covid-19 stress

    The Bank of International Settlements has indicated that regulators may need to review central counterparty clearing house margin policies after the coronavirus crisis.

    • 12 May 2020
  • Turkey’s hair raising drive for growth leaves investors on sidelines

    Turkey has stood out among emerging market countries for its rapid-fire approach to monetary policy, as it attempts to turbo-charge growth amid the coronavirus pandemic. But with sustained downward pressure on the lira, few foreign investors are willing to buy in. The crisis is also causing a hedging conundrum.

    • 12 May 2020
  • Citi snaps up Barclays’ Belbachir

    Fater Belbachir is joining Citi as head of equities, a year after taking on the same position at Barclays. The US bank is changing the leadership structure of its equities and securities services business (ESS).

    • 12 May 2020
  • Open access prospects in doubt as German presidency looms

    Open access to central counterparty clearing houses may face further delays, it emerged this week, leaving derivatives market participants divided over whether it will actually become part of European regulation.

    • 06 May 2020
  • IHS Markit furthers regtech consolidation with Catena buy

    IHS Markit’s announcement this week that it had acquired regulatory technology firm Catena Technologies marked another move towards consolidation in the industry.

    • 06 May 2020
  • Crisis Talk — OCC’s John Davidson on clearing during coronavirus chaos

    John Davidson is CEO of the Options Clearing Corporation, the equity derivatives clearing house. GlobalCapital caught up with him to discuss how clearing has held up in the Covid-19 crisis — during which equity markets endured huge volatility — and how he is planning for the return from lockdown.

    • 06 May 2020
  • BNPP trumpets DCM leadership but divi ban hits hard

    BNP Paribas blamed European authorities’ restrictions on 2019 dividend payments for losing it €184m in its equities business, when it released its first quarter results on Tuesday. However, in debt capital markets and fixed income, currencies and commodities (FICC) it was a more positive picture, as the bank took advantage of a surge in debt origination and electronic trading.

    • 05 May 2020