Derivs - Interest Rate

Northern Trust and AcadiaSoft are collaborating on a collateral management service for over-the-counter derivatives trading.

The European Securities and Markets Authority (ESMA) has launched a consultation on the rules surrounding penalties for third-country central counterparties (TC-CCPs), trade repositories (TRs) and credit rating agencies (CRAs).

Battling against falling volume, the loan market also has to work out how to replace Libor. Loan market life will surely get more stressful as the clock ticks down to December 2021, when the rate is due to be phased out, although distractions might come in the form of sustainability-linked structures, writes Mariam Meskin

For corporate treasurers, the rates markets’ transition away from Libor and other Ibor benchmarks has created a messy future for their derivatives portfolios that many would prefer not to think about. Uncertain liquidity in new products and having to understand volatility in the new benchmarks are complicating the migration but there are signs of progress amid the confusion, writes Ross Lancaster.

A fuse has been lit on renewables hedging. In offshore wind alone, a wall of investment is set to hit the industry over the next two decades, one that will take many project sponsors into cross-border investments. Those prospects are already deepening hedging markets, writes Ross Lancaster

The transition from one set of interest rate benchmarks to another is conceptually simple. But it is also unprecedented and has deeper consequences than many realised when Libor’s abolition was announced in 2017. With contracts worth hundreds of trillions of dollars referencing the disgraced benchmark, even small errors will have vast repercussions. PPI mis-selling? You ain’t seen nothing yet. Richard Kemmish reports

As European Union regulators start to review the Markets in Financial Instruments Directive, some market participants are nervous that Germany will use the opportunity to stamp out their own ambitions for open access to clearing houses.

The US Commodity Futures Trading Commission will issue Libor-transition relief this month as its chairman warned over the threat of a “zombie Libor apocalypse”.

RBC Investor & Treasury Services has launched a new collateral management service to help asset managers comply with non-cleared derivatives rules.

LCH has appointed Matthew Fetta as chief operating officer of SwapClear and listed rates.

Firms are continuing to struggle with reporting quality and processes around MiFID II compliance, according to a new survey.

The International Swaps and Derivatives Association (ISDA) has called for more clarity from regulators on the terms surrounding the cessation of Libor.