Derivs - Equity

Clearinghouses have welcomed the European Securities and Markets Authority’s efforts to shorten the frontloading window for the retrospective clearing of over-the-counter derivatives.

TriOptima has completed the largest energy portfolio compression cycle to date, eliminating 5000 transactions with a notional outstanding value of €8.4 billion.

The access to electronic trading systems and the proliferation of technology over recent years is allowing all market participants to compete in the financial markets, advantaging buysiders and other trading firms, according to Zem Sternberg ceo & managing partner at Lake Hill Capital Management.

Vishnu Kurella, a portfolio manager focused on volatility trading at BlueMountain Capital Management in New York, has left the firm to join Caxton Associates in a similar role, also in New York.

Weekly options expirations in Q1 2014 grew 56% over Q1 2013, with 248 million contracts traded. The increase was part of a wider rise in listed US options trading volume, which saw the market grow 10% in Q1 2014, according to a TABB Group report released Tuesday.

The Chicago Board Options Exchange saw record Volatility Index options and futures trading volumes this quarter, helping the bourse raise its overall operating revenue 11% to $157.9 million.

Market disruption and dislocation could occur should third country central counterparties not receive recognition under the European Market Infrastructure Directive, according to Scott O'Malia, Commissioner at the US Commodity Futures Trading Commission.

Mirae Asset Group listed last week on the Korea Exchange two synthetic exchange-traded funds in South Korea, making it the most prolific issuer in the market.

South Korean authorities are looking at two different ways a derivatives capital gains tax could be implemented; either an annual rate of 10% on capital gains earned in excess of KRW2.5 million, or an annual rate of 20% on total earnings from gold trading and financial investment products, including derivatives.

Hedge funds are not net-shorting their Chicago Board Options Exchange volatility index futures positions and have started recently to hedge against a potential correction via S&P 500 puts, put spreads on emerging markets and best of puts on global indices.

The Financial Conduct Authority has banned John Christopher Hughes, an ex-UBS exchange-traded-fund trader, from performing any function in relation to any regulated activity in the financial services industry. Between Jan. 1 and Sept. 14, 2011, Hughes was the most senior trader on the ETF desk at UBS when Kweku Mawuli Adoboli, another trader on the desk, made $2.3 billlion unauthorised trading losses through an unreported fund they called the umbrella, according to a notice released this morning by the regulator.

US regulators could reveal further details on margin requirements for non-centrally cleared over-the-counter derivatives before summer, giving market participants greater certainty on future collateral requirements.