Derivs - FX

Messaging protocols for many over-the-counter products that will be mandated to be cleared are already standardized, according to Philip Whitehurst, director of SwapClear product management at LCH.Clearnet.

Interbank over-the-counter U.S. dollar, Indian rupee forwards, fx swaps and other INR cross currency options will nee to be reported from July 9 to the Clearing Corporation of India’s newly developed trade reporting platform.

TrimTabs is rolling out the TrimTabs Flow Index for retail investors, based on the flows of U.S. equity exchange-traded funds.

Interdealer-broker ICAP is reviewing its EBS fx trading platform with an eye to possible changes as it considers dropping the fifth decimal place on its currency quotes and switch to so-called half-pip pricing.

Derivative regulations have fuel fears among investment firms that the measures could result in a drop in liquidity and a shortage of collateral across derivatives markets, according to a survey by State Street and TABB Group.

Banks acting as counterparties in securitizations are set to begin work swiftly to address the effects of Moody’s Investors Service’s sweeping bank downgrades last week, which will have a far-reaching effect on securitization deal ratings, according to DI sister publication Securitization Intelligence.

The U.S. Commodity Futures Trading Commission has re-proposed a rule that, if enacted, will expand the kinds of firms eligible for block trading by aggregating client funds. The original rule had a narrower base of firms.

Greater clarity is needed on rules for hedging and collateral from the European Securities and Markets Authority.

Application of regulatory requirements across borders is one of the most important issues that still need to be death with, according to David Lawton, acting director of markets at the Financial Services Authority.

Australia’s approach to mandatory clearing of over-the-counter derivatives will make it difficult to establish a domestic clearinghouse, moving clearing of Australian derivatives offshore and limiting the ability of local regulators to manage risk, according to industry officials.

Ben Shooter, a managing director and head of global currencies and emerging markets sales at Credit Suisse in London, is joining JB Drax Honoré, a LIFFE short-term interest rate options broker, in a similar role.

The U.S. Commodity Futures Trading Commission has obtained a federal court order allowing it to impose more than USD5.4 million in restitution and a fine on Texas-based CDH Forex Investments and CDH Global Holdings along with commodity trading advisers Linda Harris and Chance Harris for alleged fraud in connection with the operation of a commodity pool and managed accounts trading off-exchange fx contracts.