Derivs - Clearing and Exchanges

A proposed clearing mandate for Canadian derivatives markets is generating concern over which products are captured for clearing. The proposals could eclipse regulations in the EU and US.

Nasdaq OMX Clearing has received authorisation from the European Securities and Markets Authority to clear both exchange traded and over the counter FX derivatives. This means that Nasdaq is only the second central counterparty that is FX recognised under the European Market Infrastructure Regulation.

Tan Boon Gin, director of the commercial affairs department at the Singapore Exchange, has been appointed as chief regulatory officer effective June 15. This comes following the departure of Richard Teng.

The Chicago Board Options Exchange has entered into an exclusive agreement with the London Stock Exchange Group to develop and list options on FTSE and Russell indices. Additionally, the two firms will collaborate on new index options products.

Regulators continue to lack a true picture of risk in individual jurisdictions because of incomplete and inconsistent derivatives trade data that is being reported to trade repositories, according to the International Swaps and Derivatives Association.

Chris Rhodes, ex-partner and senior trader at proprietary trading firm Arc Derivatives based in London, has joined ICE Futures Europe as head of interest rates, also based in London. He joins the firm in a newly created role.

Chris Concannon, president of BATS Global Markets, has been appointed as CEO replacing Joe Ratterman.

Jacques Aigrain, chairman of LCH.Clearnet Group Limited and LCH.Clearnet Ltd. based in London, is stepping down and will be succeeded by Lex Hoogduin, current board member who is based in Amsterdam.

Magnus Bocker, CEO of the Singapore Exchange will leave the firm at the end of June this year.

Overall interest rate derivatives trading that was reported to swap data repositories last week only decreased by 1% from the previous week, according to data from the International Swaps and Derivatives Association.

GFI Group’s board of directors have unanimously agreed to support BGC Partners’ tender offer for all its outstanding stock at $6.10 per share in cash concluding the hostile takeover that BGC initiated last year. This came following the merger agreement that was made between CME Group and GFI in July, which led to a bidding war between the exchange and BGC.

The limited number of central counterparties and over-the-counter clearing members in the UK is hampering competition. This could result in a monopolisation of services which may lead to a less resilient economy, according to feedback received by the Financial Conduct Authority.