Derivs - Credit

To position for 10-year sterling rates staying in a tighter range than priced by the market, Barclays is suggesting 1x11 cap-floors versus 1y*10y swaption wedges.

The demand for front-end protection via credit default swaps is declining on the back of more stable funding conditions and lower volatility.

The European Commission is reviewing the three committees under the umbrella of the European Financial Stability Facility that supervise financial services across Europe.

A string of cases involving structured products and the Tax Effectif Global, or statutory interest rate, in France has lawyers fearing legislation may be needed to tighten the rules governing interest rate agreements.

Changes to proposed rules setting out margin requirements for non-centrally cleared derivatives are to be minimal when final rules are approved later this year, according to an official familiar with the rules.

Buyside firm the D.E. Shaw Group is placing trade restrictions on U.S. counterparties that have not yet registered as swap dealers under the U.S. Commodity Futures Trading Commission’s Dodd-Frank over-the-counter derivatives market reforms.

Most Asian end-users are ill-prepared for the incoming U.S. Commodity Futures Trading Commission’s over-the-counter derivatives market reforms, with only a small percentage ready to comply with swap dealer, trade reporting and external business conduct standards.

Investment by the industry in infrastructure has led to a further decrease in outstanding confirmations, according to the International Swaps and Derivatives Association’s 2013 Operations Benchmarking Survey.

Japanese regulators are unlikely to implement reforms around swap execution facilities, or organised trading facilities, in the near-term, despite such rules currently being pursued in the U.S. and Europe.

Regulatory proposals covering over-the-counter derivatives will bring significant costs to end users, while rules surrounding reporting requirements and collateral remain unclear and need further clarification, according to Joel Kim, head of fixed income, Asia Pacific, at BlackRock.

Inconsistent and conflicting final rules for over-the-counter derivatives between the U.S. and Europe cannot be ruled out, according to Ng Nam Sin, assistant managing director in the Monetary Authority of Singapore’s development group.

Joseph Vona, U.S. dollar interest rates options trader at BNP Paribas in New York, has left the bank.