Derivs - Equity

Bank of England governor Mark Carney confirmed to the UK parliament on Tuesday what currency traders and analysts have been saying for weeks: worries about the EU referendum are causing higher prices for sterling options and raising the risk of a sharp fall in the pound.

US economic data, despite some positive signals, is consistent with a continuing turn higher in market volatility, quantitative modellers have said.

Citi has hired two executives in equity derivatives from Goldman Sachs.

A concerted rally of US and European credit and equity in the run-up to next week's European Central Bank meeting has all but eclipsed the blowout that occurred during last month’s turmoil. But traders warn that the market is still highly technical in its behaviour and further heavy volatility may not be far way.

Intercontinental Exchange’s assertion this week that it is mulling an offer for the London Stock Exchange Group, along with rumours of rival interest from CME, has ushered in a ‘phoney war’ with main suitor Deutsche Börse, say market participants — but the ensuing battle makes the future of LSE’s clearing business far from certain.

Telefonica sold on Wednesday what a lead banker said was the firm’s first equity-neutral convertible bond, for €600m, continuing a recent trend for such structures.

Intercontinental Exchange (ICE), the exchange, clearing house and data services operator that is circling an approach for the London Stock Exchange, has agreed to buy Standard & Poor’s Securities Evaluations and Credit Market Analysis.

Equity, currency and rates futures traders adopted a riskier posture last week after market prices stabilised, the weekly Commitment of Traders report showed.

The Singapore Exchange (SGX) has put in a non-binding bid to acquire London-based Baltic Exchange, the global hub for trading and settlement of physical and derivative shipping contracts.

Mounting clamour around the prospect of the UK voting this summer to leave the European Union raised the risk stakes for currency and options traders this week, but some volatility traders preferred to pin their hopes on the European Central Bank producing another ‘big bazooka’ next month.

Two new derivative products that were launched this week suggest an increased focus on alternative sources of beta and exposure to risk premiums.

TradeStation Group has sold the accounts of its IBFX/TradeStation Forex subsidiary to OANDA as IBFX looks to exit the forex dealer business.