Derivs - Equity

Counterparties are being offered significantly worse credit terms for euro OTC derivative contracts, according to a survey of 28 banks by the Eurosystem of central banks.

The European Securities and Markets Authority has established a memorandum of understanding with regulatory authorities in New Zealand, to enhance co-operation over regulation of central counterparties.

Credit terms for counterparties using euro-denominated OTC derivatives have worsened since December, according to a panel of 28 banks, marking their biggest reported tightening since the consultation started in 2013.

Theresa May, the UK prime minister, on Tuesday announced her intention to seek an early general election for June 8, but the move that will allow her to solidify her Brexit mandate has had no major impact on market volatility.

CME Group will introduce a range of futures and options on the Russell 2000 index, a popular benchmark for tracking the small-cap segment of the US stock market.

Investors have pumped up volatility indicators this week, spooked by the possibility of a Jean-Luc Mélenchon/Marine Le Pen showdown in the upcoming French presidential election.

Mizuho has hired another banker as part of its expansion in West Coast investment banking. The bank has been building out its tech team in its San Francisco office, but has now hired for healthcare investment banking as well.

The European Energy Exchange (EEX) is to launch financially settled power futures for Germany ahead of any possible split of the present German-Austrian power price zone.

The European Securities and Markets Authority (ESMA) has clarified margin rules under the European Market Infrastructure Regulation (EMIR) in a new document, outlining the situations in which central counterparties (CCPs) may allow up to 100% collateral reductions for derivatives contracts.

Volume figures released by most of the major derivative exchanges for the month of March showed increased activity, with interest rate products swelling volumes.

The Dubai Gold and Commodities Exchange (DGCX) on Sunday announced the launch of a Shanghai Gold futures contract, increasing foreign investors' access to China's bullion market.

French finance minister Michel Sapin has warned British officials that London will lose its euro denominated derivatives business after leaving the European Union, saying that the bloc must be “masters” on rules that apply to its currency.