Derivs - Equity

Regulators should focus on broad outcomes and similarities between US and European Union trading platforms rather than conduct a granular, rule-by-rule comparison of the two frameworks, the International Swaps and Derivatives Association has said.

Inflation data and distortions from oil prices may lead the Federal Reserve to move faster on raising rates than futures prices imply, BlackRock has warned.

Markets divisions of many banks have struggled to grow in the years since major post-crisis regulation was passed, but in 2015 equity derivatives was a brighter spot.

Credit Suisse has made two senior appointments to its ‘advanced execution services’ (AES) team in Hong Kong, which offers algorithmic trading strategies.

The London Stock Exchange Group and Deutsche Boerse are in talks over a potential merger, the boards of both groups said in a joint statement on Tuesday.

The Chicago Mercantile Exchange Group (CME) said last week that it is launching a new futures contract in March designed to offer exposure to newly offered equity shares and corporate spin-offs.

The extraordinary versatility of convertible bonds — but also the market’s unpredictability — were highlighted on Thursday when Vodafone launched an unprecedented £2.88bn bond designed to achieve the near impossible: debt-like funding that counts as equity but is not dilutive to shareholders, writes Jon Hay.

JP Morgan and Morgan Stanley, bookrunners of Vodafone’s unprecedented £2.88bn mandatory convertible bond, have just gone out with a message saying the book for the deal is covered. The book will close at 7.45pm London time.

Singapore Exchange (SGX) is looking to make changes to rules governing futures trading on the exchange, as well as clearing derivatives and a number of other contract specifications.

(updated with more detailed analysis 2.20pm) Vodafone is today issuing an unprecedented £2.88bn mandatory convertible bond, with many innovative features, that combines aspects of two recent trends in the market: the equity-neutral CB and the subordinated, equity-accounted deal.

A protracted slump in equity markets has pushed some risk measures in the US and Asia to extremes.

Financial market regulators finally have something to cheer about, after a host of recent setbacks, as Europe and the US this week took a big step towards aligning their treatment of central counterparties (CCPs). But the move could also heighten competition for clearing banks in Europe.