Derivs - Interest Rate

Tradeweb has completed the first fully-electronic compression transaction of cleared derivative trades on its swap execution facility, TW SEF. Arcem Capital, an investment manager, executed a pool of interest rate swap trades as one, or a zero line-item, transaction with Deutsche Bank, cleared by LCH.Clearnet’s SwapClear.

The Ontario Securities Commission's final rules covering product determination, and trade repositories and derivatives data reporting are increasingly concerning market participants since no entity has been designated a trade repository in Canada yet.

Hong Kong’s over-the-counter derivatives clearinghouse has cleared a U.S. dollar, renminbi non-deliverable forward and a Hong Kong dollar interest rate swap after beginning clearing operations on Monday.

MarkitSERV, the electronic trade processing service for over-the-counter derivatives, now connects customers to OTC Clearing Hong Kong Ltd, the derivatives clearing services from the Hong Kong Exchanges and Clearing Limited.

The last year has seen regulations mandating reporting of derivatives trades being gradually implemented in a number of key jurisdictions around the world. As a result, it has been and continues to be a busy time for regulators, service providers and market participants alike.

Wayne Luthringshausen has been atop the listed options business for over 40 years. Ahead of bowing out as chairman and chief executive of Options Clearing Corp. at year-end, he sat down with Executive Editor Peter Thompson to outline OCC plans for growth—including its investigation of over-the-counter option clearing—and take stock on the key themes that have shaped the market through his career.

To hedge for higher rates and a flatter long-end curve over the medium term, Credit Suisse is recommending buying six-month constant maturity swap curve floors on 30s/7s U.S. rates.

Liquidity on swap execution facilities is being hit by players withdrawing from the platforms because of concerns about cross-border regulations.

The Financial Stability Board is working on setting up the Global Legal Entity Identifier Foundation, a non-profit organisation that will oversee a central operating unit and local operating units that will monitor the international LEI system.

Firms need more time to fully comply with the foreign accounting tax compliance act and effectively implement changes, according to numerous trade associations.

Firms that are engaged in derivatives trading are being asked to specify their derivative exposure in a range of asset classes entered into from Nov. 1, 2012 to Oct. 31, 2013, and submit the numbers via a survey to the Hong Kong Securities and Futures Commission by Dec 20, 2013.

To take advantage of a mispricing in South African monetary policy, Société Générale recommends receiving two-year interest rate swaps on the rand.