Derivs - Clearing and Exchanges

Overall credit default swap notional that was reported to swap data repositories last week increased by 49% from the previous week, according to data from the International Swaps and Derivatives Association, continuing a multi-week trend of increasing notional.

BGC Partners has increased its all-cash tender offer to acquire GFI Group to $5.45 per share, representing a $.20 premium per share compared to CME Group's offer.

Société Générale’s Newedge prime services business has added LCH.Clearnet’s ForexClear as a new central counterparty clearing houses to its client over-the-counter clearing offering, allowing it clients to clear non-deliverable forwards.

The Japanese Securities Clearing Corp has completed the first compression cycle for cleared yen interest rate swaps using TriOptima’s triReduce service, to eliminate notional principal and reduce risk.

Overall credit default swap notional that was reported to swap data repositories last week increased by 33% from the previous week, according to data from the International Swaps and Derivatives Association.

The European Commission has extended the mandatory capital standards for exposures to central counterparties under the Capital Requirements Regulations. Recognising that CCP authorisation and compliance requires more time to complete, regulators have extended the deadline by six months.

Asset managers, including hedge funds and others, are increasingly using equity index derivatives and futures to better allocate capital, minimise transaction costs and execute international exposure strategies, according to a report by market research firm TABB Group.

Commodity Futures Trading Commission commissioner Mark Wetjen claimed that central counterparty risk mitigation and management strategies need more coordination and harmonisation. But legislative bodies should take note of the potential negatives associated with harmonisation and the centralisation of counterparty risk before pursuing new rules, said lawyers.

Overall credit default swap notional that was reported to swap data repositories last week increased by 48% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rate derivatives trading that was reported was also up by 54% from the previous week, following a week of moderate decreases in trading for both CDS and rates.

Javelin, a swaps execution facility, has asked the Commodity Futures Trading Commission for a reduction of the liquidation time required for market agreed coupon swaps and international money market swaps that are cleared on SEFs in an effort to promote better liquidity and higher competitive trading volumes.

The European Securities and Markets Authority (ESMA) signed a memorandum of understanding (MoU) with the Australian Securities and Investments Commission (ASIC), which grants Australian authorities access to derivative contracts data from EU trade repositories (TRs) outside of their jurisdiction.

The Depository Trust and Clearing Corporation has partnered with TriOptima, enabling daily reconciliation of over-the-counter derivatives trades that are reported to DTCC’s European trade repository via triResolve, as mandated by the European Market Infrastructure Regulation.