Derivs - Credit

As structured note issuance tapers out over the coming months, creating a shortage of vega supply, strategists at Barclays suggest taking a long position in euro 5y*5y rates through calendar spreads.

The Monetary Authority of Singapore has proposed requiring reporting of derivative positions over SGD8 billion (USD6.3 billion) for non-financial specified persons.

Companies accused of infringing E.U. antitrust rules by colluding to prevent exchanges entering the credit derivatives market between 2006 and 2009 could face a fine of up to 10% of annual turnover globally.

Volatility is now the name of the game in the credit default swap market, and it is likely to remain the case for the remainder of the summer.

European regulators must take into account how adopted asset segregation models will fit alongside the bankruptcy code, according to Ted Leveroni, executive director, derivatives strategy and external relations at Omgeo.

Senior unsecured bank bonds have continued to drift wider this week. Institutional investors are staying on the sidelines rather than buying into a market that may still fall further and spoil their half year numbers. Fast money is behind the widening, said bankers.

China’s Supreme People’s Court is unlikely to interpret the nation’s bankruptcy law, clarifying provisions similar to close-out netting arrangements, ahead of an actual bankruptcy case, despite active lobbying for judicial guidance from the nation’s regulators.

Global aggregation of trade repository data is essential to enable comprehensive monitoring of risks to financial stability, according to the Financial Stability Board.

Li-Woon Lim, co-head of fixed income, currency and commodity trading at UBS in Singapore, is to leave the firm later this month.

The issuance of exchange-traded funds referencing more diverse Chinese underlyings could increase should Hong Kong subsidiaries of U.S. or European fund managers receive approval under the renminbi qualified financial institutional investor program by end-of-the-year.

U.S.-based counterparties operating in Asia could get the cold shoulder from major local swap dealers, such as Singaporean banking institutions, and mid-tier Japanese securities firms, after the Commodity Futures Trading Commission’s exemptive relief on swap rules ends July 12.

Twenty-day realized volatility on the iTraxx Main Europe is at its highest level since November 2011 after the index hit 122 bps on Friday, according to Markit.