Derivs - Credit

Hedge funds and real money players in Europe and Asia are selling five-year senior credit default swaps on Standard Chartered after strategists at BNP Paribas noted the name is trading close to its one-year widest level compared to most of the banks in the iTraxx SenFin index. It is also trading wide compared to the Hong Kong equity market, to which it normally correlates.

Wayne Luthringshausen has been atop the listed options business for over 40 years. Ahead of bowing out as chairman and chief executive of Options Clearing Corp. at year-end, he sat down with Executive Editor Peter Thompson to outline OCC plans for growth—including its investigation of over-the-counter option clearing—and take stock on the key themes that have shaped the market through his career.

Liquidity on swap execution facilities is being hit by players withdrawing from the platforms because of concerns about cross-border regulations.

The Financial Stability Board is working on setting up the Global Legal Entity Identifier Foundation, a non-profit organisation that will oversee a central operating unit and local operating units that will monitor the international LEI system.

Firms need more time to fully comply with the foreign accounting tax compliance act and effectively implement changes, according to numerous trade associations.

Hedge funds are selling equity and credit default swaps on single names using signals from an implied asset volatility framework developed by Deutsche Bank.

Firms that are engaged in derivatives trading are being asked to specify their derivative exposure in a range of asset classes entered into from Nov. 1, 2012 to Oct. 31, 2013, and submit the numbers via a survey to the Hong Kong Securities and Futures Commission by Dec 20, 2013.

To take advantage of a mispricing in South African monetary policy, Société Générale recommends receiving two-year interest rate swaps on the rand.

Regulatory requirements for buysiders in regard to bunched orders is deterring some investors from trading on swap execution facilities, according to Richard McVey, chairman and ceo of MarketAxess, told attendees at the at the Wholesale Markets Brokers' Association's SEFCON IV conference at the Grand Hyatt Hotel in New York on Monday.

Varying regulation in different jurisdictions is going to result in fragmentation and the potential for regional markets, according to speakers at the Wholesale Markets Brokers' Association's SEFCON IV conference at the Grand Hyatt Hotel in New York yesterday.

The International Monetary Fund has given the Singapore Exchange’s over-the-counter derivatives clearinghouse its approval, saying the central counterparty is sound and efficient with an effective risk management framework.

The addition of third parties, such as clearinghouses and swap execution facilities, when executing a trade in a disclosed market is raising concerns over delays in risk-transfer, according to speakers at the Wholesale Markets Brokers' Association's SEFCON IV conference at the Grand Hyatt Hotel in New York today.