Derivs - Clearing and Exchanges

CME Group has increased its offer for GFI Group to compete with a recent bid by BGC Partners. The exchange has now increased the consideration payable to GFI Group stockholders from $4.55 a share, to $5.25 a share, payable in a mix of CME Group Class A common stock and cash.

Regulatory co-ordination between different authorities in Canada has helped market participants implement the trade reporting rules for over-the-counter transactions that came into effect on October 31.

LCH.Clearnet has partnered with Baltic Exchange and Cleartrade Exchange to clear OTC commodity derivatives as block futures in dry bulk freight forward agreements (FFAs). This move has been driven by market demand as participants adapt their trading strategies in the face of regulatory hurdles.

Overall credit default swap notional that was reported to swap data repositories last week decreased by 40% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rate derivatives trading that was reported was also down by 18% from the previous week. This follows a week of sizeable increases in trading volumes in both CDS and rates.

The Singapore Exchange logged record volume of derivatives transactions in November with daily average trading volumes up 45% year-on-year, following the launch of the Shanghai-Hong Kong Stock Connect last month. This was primarily driven by FTSE China A50 futures and SGX FX futures in the Indian rupee and renminbi.

Michael Davie, CEO of LCH.Clearnet Limited, has been appointed group chief operating officer in a newly created role. Martin Pluves, COO of the firm, will replace Davie as CEO.

The Intercontinental Exchange has completed the Liffe future and options transition to ICE Futures Europe. The final phase of the transition was completed with the equity derivatives suite transferring to the ICE platform, following the migration of European interest rate derivatives and soft commodity contracts earlier this year.

GFI Group has launched dollar-denominated market agreed coupon (MAC) swaps on its swap execution facility. The firm now offers live tradable prices for such contracts in a central limit order book on its electronic trading platform known as RatesMatch.

The derivatives exposure method in the recently issued Basel III Leverage Ratio Framework and Disclosure Requirements may hit firms' ability to use cleared derivatives to hedge risk, two industry bodies believe.

CME group plans to launch futures on tri-party repurchase agreement indices developed by BNY Mellon, providing investors with a novel tool to hedge their interest rate risk.

Institutional investors such as pension funds are increasingly interested in futures and exchange traded funds on MSCI minimum volatility factor indices based off its equity market indices, including the MSCI emerging market futures index.

Open interest in dollar-denominated interest rate swap futures on Chicago-based futures bourse Eris Exchange has reached $14bn in notional, a new record all-time high.