Derivs - FX

Dealers in the interbank market in mainland China are actively pricing interest rate swaps on the country’s new Loan Prime Rate, with a number of transactions already executed.

ANZ has started trading USD 20y-30y callable bonds and callable zero coupon swaps in Taiwan as part of the firm’s expansion into structured flow products across Asia.

Société Générale has seen renewed interest from private banks for strategies that give exposure to Japanese equity while mitigating yen weakness, as interest in Japan surges from European and U.S. investors.

The Singapore Exchange is looking to refine how its central counterparty operates during a default and is proposing changes to improve the auction process for managing a defaulting over-the-counter derivative contract.

Regulatory burdens such as authorization for central counterparty clearinghouses are likely to hinder the launch of new products in Europe, noted Trevor Spanner, ceo of LME Clear, speaking at the 29th Annual Futures & Options Expo in Chicago.

The U.S. Commodity Futures Trading Commission has issued a letter providing extended relief regarding registered swap execution facilities for fx swaps.

Derivative.com, the Swiss multi-dealer structured product click and trade platform, is working on offering bonus and outperformance certificates to users, according to Eric Wasescha, ceo of Derivative Partners, which operates the platform.

Counterparties may be disincentivized from choosing to segregate their collateral following final rules from the U.S. Commodity Futures Trading Commission addressing the manner in which swap dealers hold collateral for uncleared swaps.

Investors have been buying back risk-reversals that were shorted earlier in the month on the euro against the U.S. dollar following surprisingly weak euro area inflation numbers Thursday and the U.S. Federal Open Market Committee statement Wednesday.

Bloomberg Indexes has launched the Bloomberg U.S. Dollar Index, as a new way to trade the unit against major currencies globally, including emerging market currencies such as the Chinese offshore renminbi and Mexican peso.

Investors have been picking up short-dated calls on the U.S. dollar ahead of the U.S. Federal Reserve’s Federal Open Market Committee today.

The Singapore Exchange’s over-the-counter derivatives clearinghouse is looking to amend its clearing rules to allow U.S. swap dealers to join the CCP under a new membership category. The move will help the SGX’s CCP gain approval as a derivatives clearing organization under U.S. Commodity Futures Trading Commission rules.