Derivs - Equity

A group of banks and service providers, led by New York based start-up Axoni, have completed a test of blockchain technology and smart contracts to manage affirmations and post-trade lifecycle processing for over-the-counter equity swaps, building on similar work done earlier this year for credit derivatives.

BNP Paribas has brought together its global listed derivatives businesses on a single platform hosted by UK software and services company Fidessa.

Volume figures released by major derivative exchanges show that low volatility continues to subdue volumes in equity derivative products, although flows improved in September. Interest rate, metal and energy derivatives show growth, however.

The London Stock Exchange this week moved to deflect a mounting list of European Commission concerns about its proposed merger with Deutsche Börse by saying it would consider selling off its LCH SA French clearing business.

The Chicago Board Options Exchange has presented further research that shows indices investing in options strategies have historically been less volatile than other key stock, bond and commodity benchmarks, following on from another study it unveiled last week.

Shareholders of the Baltic Exchange have approved the firm’s takeover by the Singapore Exchange.

Intercontinental Exchange has added JP Morgan as the fourth clearing member of its ICE Clear Singapore subsidiary.

CME Group rolled out a suite of weekly expiring, S&P index-based options on futures this week, while European rival exchange Eurex introduced trading of weekly expiring equity option contracts onto its exchange that reference SMI, Switzerland’s blue chip stock market index.

The Chicago Board Options Exchange has made a push for equity and options trading power in the US and Europe, by agreeing terms this week to buy Kansas-based exchange Bats Global Markets for $3.2bn.

Indexes that invest in options strategies have historically generated better returns and lower volatility than other key stock, bond and commodity benchmarks, according to a study backed by the Chicago Board Options Exchange.

The European Securities and Markets Authority has proposed making it mandatory to trade the iTraxx Europe and Crossover credit default swap indices on a regulated market or other recognised trading facility.

Hong Kong’s Securities and Futures Commission has begun consultations with market participants over plans to grow its futures and options market by relaxing trading position limits for listed derivatives.