Derivs - Interest Rate

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.

Some market participants will continue to trade certain derivatives, even if it's inefficient and expensive to do so, despite the regulatory push to trade on swap execution facilities and clear, according to Rahul Gover, head derivatives trader at E*Trade, speaking at the Futures Industry Association's 29th annual Futures and Options Expo in Chicago Wednesday.

Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, is not confident the agency is able to effectively enforce regulatory reforms due to a lack of resources.

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.

Newedge will be joining forces with Global Markets Exchange Group in order to provide execution and clearing services to buy and sellside clients globally.

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.

Société Générale is pitching 15s17s steepeners on the Brazilian swap rate as the firm expects fiscal concerns in the country to re-emerge and apply upward pressure on long-end yields, despite recent flattening in the Brazilian yield curve.

Old Park Capital, a London-based asset management firm, has launched one of its investment strategies via Old Park Capital Maestro Fund and sees fears over increased volatility as a key draw for investors.

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.

Credit Suisse is recommending investors receive fixed rate in 1y1y Canadian Dealer Offered Rate swaps to play a bullish bias on rates in the country.

Rabobank has been fined by regulatory authorities for more than USD1 billion in connection with investigations linked to the firm’s historical Libor and Euribor submission processes.