Derivs - Equity

The gross market value of over-the-counter (OTC) derivatives has resumed its precipitous decline after briefly gaining positive momentum between 2015 and 2016, according to figures from the Bank for International Settlements (BIS).

XTX Markets, the specialist liquidity provider, has settled on Paris as its European Union hub for after the UK leaves the bloc.

BlackRock has launched a suite of new investment products designed to allow investors to build a portfolio of ESG investments with six new exchange-traded funds.

The Basel Committee for Banking Supervision (BCBS) on Thursday launched a consultation to address a quirk of Basel capital rules reviled by many derivatives clearers.

Rostin Behnam, a commissioner at the US Commodity Futures Trading Commission (CFTC) flagged potential issues in the governance and risk management of clearing houses (CCPs) on Tuesday.

The International Swaps and Derivatives Association (ISDA) released an updated version of its Model Netting Act on Tuesday. The Act is a guide for legislators looking to properly institute close-out netting rules.

A sharp sell-off in US equities on Wednesday led to global panic on Thursday as other indices followed suit. Asian and European markets showed some sign of life on Friday, although were still a long way down, but the ramifications of a change in risk sentiment could have lasting effects across capital markets, write Sam Kerr, Ross Lancaster, Costas Mourselas, Craig McGlashan and Aidan Gregory.

Equity markets in the UK, US and eurozone sold off late Wednesday and on Thursday, leading to a mixed reaction from equity derivatives strategists.

Tuesday’s intervention by the Bank of England into the debate on the future of euro clearing is another welcome move from regulators. The debate has been too long dominated by political noisemaking.

The International Swaps and Derivatives Association (ISDA) has released a white paper on smart derivatives contracts, setting out a framework for how these could be built and function in scenarios such as defaults.

Pan-European securities watchdog ESMA on Friday announced that it would renew its restrictive measures for contracts for difference (CFD) products for another three months.

Five trade bodies began lobbying efforts on initial margin phase-in in earnest this week, warning global regulators of severe consequences if incoming rules are not amended.