Derivs - Equity

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.

Shane Edwards, ex-global head of equities structuring at UBS in London, has been appointed head of global equity derivatives, effective this month.

In today’s regulatory environment there are numerous know-your-customer checks that need to be performed and accurate client and counterparty data checks that need to be made to ensure global regulatory obligations are met. Not only do firms need to make substantial changes to their internal processes to meet these requirements, they must ensure that the counterparty and client data they hold is accurate from the outset and then efficiently managed on an ongoing basis. Legal entity data management is far from a simple task, however, and with a swathe of risk management and investor transparency requirements due to enter into force over the coming years, firms need to give this critical activity the appropriate consideration.

The financial crisis trained investors to be more attentive to potential areas of complacency, especially where derivatives are involved.

Tullet Prebon has acquired PVM Oil Associates, adding substantial energy trading capacity to the firm’s product and services offerings. Tullett Prebon’s ability to trade oil-based over-the-counter derivatives contracts will be substantially improved, as will its ability to expand into futures and physical options broking.

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.

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.

The mutual exchange offering between Hong Kong and Shanghai stock exchanges may drive Chinese and Hong Kong equity product trading, innovative derivatives strategies and growth in other Southeast Asian markets.

Sandeep Agarwal, head of EMEA debt capital markets and Nick Williams, head of EMEA equity capital markets, will become co-heads of the EMEA global markets solutions group (GMSG), the wider structure that includes ECM, DCM, leveraged finance, equity derivatives, debt derivatives, restructuring, liability management and ratings advisory.

The Federal Open Market Committee has developed a reputation in recent years as a stalwart foe of market volatility. That reputation has been justly earned, but recent comments suggest that the committee may be adopting a different attitude.