Derivs - Interest Rate

The Shanghai Clearing House has cleared its first renminbi interest rate swap, a deal between Industrial and Commercial Bank of China and the Shanghai Pudong Development Bank.

The International Swaps and Derivatives Association and China’s National Association of Financial Market Institutional Investors have talked about cooperating on areas of interest. It’s a detente following a period of frosty relations.

The International Swaps and Derivatives Association has appointed external counsel to produce a memorandum updating its clients on China’s close out netting rules.

A proposed amendment to South Korea’s Commercial Act Enforcement Decree will allow firms to set off unrealized gains arising from hedging derivatives against the unrealized losses of the underlying transactions.

Morgan Stanley has named Jakob Horder and Mitch Nadel as co-heads of global rates following the departure of Glenn Hadden, global head of interest rates, in New York.

Domestic participation in the Japanese interest rate derivatives market is set to continue to increase in 2014 on the back of the country’s stimulus plan initiated earlier in year, according to traders.

Market participants that are found guilty of committing fraud or manipulation in the E.U. could face jail under rules agreed by the European Parliament and E.U. member states today.

Financial counterparties and non-financial counterparties will be required to delegate risk-management procedures and arrangements to an asset manager who is providing portfolio management services to the counterparty on an agency basis, according to the European Securities and Markets Authority.

Global systemically important financial institutions are hiring more risk management specialists familiar with counterparty risk management, clearinghouse frameworks and the Committee on Payment and Settlement Systems of the Bank for International Settlements and the International Organization of Securities Commissions Principles for Financial Market Infrastructures in a bid to better access the robustness of CCPs.

Rules from the U.S. Commodity Futures Trading Commission that require derivatives to be traded on a swap execution facility have resulted in fragmented liquidity and decreased derivatives trading volumes, according to a survey conducted by the International Swaps and Derivatives Association.

The launch of client clearing in Japan next February could face hurdles due to the lack of clients signing up for the service.

Filippo Olivetti, managing director and co-head of markets structuring for Asia Pacific at the Royal Bank of Scotland in Tokyo, has taken a sabbatical.