Derivs - Equity

Default fund contributions by central counterparties, known as skin in the game, are not the only risk management mechanisms for clearing house operations and resolution systems, and they do not compensate for other risk mitigation strategies, said market officials.

Competing markets and jurisdictions between China and Hong Kong pose regulatory uncertainty and liabilities as derivatives market participants transact on the Hong Kong-Shanghai Stock Connect, according to panellists at the Futures Industry Expo Conference in Boca Raton, Florida.

One institutional investor sold a large volume of puts on the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (HYG) Monday on the back of rising implied volatilities caused by prospective Federal Reserve rate hikes.

Luke Moranda, ex-managing director for clearing technology and global payments technology, Treasury services technology at JPMorgan Chase, has joined the Options Clearing Corporation as senior vice president and chief information officer.

Giles Triffitt, the ex-head of operational risk at KPMG based in Edinburgh, has been hired as chief risk officer at Tullett Prebon based in London in a newly created role.

The European Securities and Markets Authority has entered into a memorandum of understanding with the Monetary Authority of Singapore to extend formal recognition of covered central counterparties based in Singapore under the European Market Infrastructure Regulation.

Christopher Fix, former CEO of the Dubai Mercantile Exchange, has been appointed as a managing director and head of Asia Pacific at CME Group.

The Singapore Exchange has opened a new office in Hong Kong in a bid to further bolster its growth in Greater China. This comes following the firm’s expansion of operations into Hong Kong last summer.

The annual Americas Derivatives Awards from GlobalCapital Derivatives, the new Derivatives Week, will take place on May 7, 2015. Save the date.

The European Securities and Markets Authority has signed a memorandum of understanding with the Reserve Bank of Australia which will allow the RBA access to derivatives data held in European trade repositories as required under the European Market Infrastructure Regulation.

The extremes of last quarter and the start of this year have subsided, and most measures of volatility and of the cost of options protection have returned to normal ranges.

The European Court of Justice ruled on Wednesday that euro-denominated securities transactions can be cleared outside the eurozone, a victory for the UK, which brought the case against the European Central Bank.