Derivs - Equity

The Futures Industry Association has called for changes to European derivative reporting rules, suggesting that some aspects of the regulations are "duplicative" and not properly tailored to listed products.

Frustration boiled over at the Futures Industry Association's (FIA) annual Boca Raton meeting on Wednesday, with Commissioner Brian Quintenz of the US Commodity Futures Trading Commission (CFTC) threatening European regulators with obstruction.

The Futures Industry Association began its annual conference in Boca Raton, Florida, on Tuesday, with delegates assembling to discuss the challenges and opportunities facing derivatives markets 10 years after the great financial crisis.

Index provider Limeyard said on Wednesday it had entered into a partnership with the Vienna Stock Exchange under which they will develop indices together.

Equity markets began the week facing what could well have proved major disruption in the form of Sunday's Italian election result and talk of tariffs in the US. But they have proven remarkably resilient to global shocks.

Derivatives exchanges around the world reported strong February volumes this week, potentially painting a rosy picture for the year ahead as markets seem set to return to higher volatility.

European implied equity volatility has fallen after Angela Merkel secured a fourth term as German chancellor and despite Italy's general election producing a hung parliament.

An awful lot of capital and financial market participants are relaxed about Sunday's Italian election, predicting that coalitions and deadlock will remain a staple of Italy's political system. But others urge caution — and hedging — while the going is good for fear that complacency is taking hold, writes Costas Mourselas.

Investor worries about this Sunday's election in Italy have not materialised yet in terms of having an affect upon fear gauges and hedging activity with both subdued, especially when compared to notable European elections from last year.

Equity repo, a way to lend shares to the market, is a key parameter in equity derivatives trading but is yet to be fully considered and monetised. Given the opportunities that exist in the space, market participants would do well to change tack.

International law firm Mayer Brown has hired eight lawyers from the New York and San Francisco offices of Morrison & Foerster, including capital markets partners Anna Pinedo and James Tanenbaum .

Deutsche Boerse's new CEO, Theodor Weimer, said this week that, given the low market volatility of 2017, there were "headwinds" for the exchanges group, but that there was opportunity heading into 2018.