Derivs - Interest Rate

The Moscow Exchange has launched clearing of over-the-counter derivatives a week after the National Clearing Centre became Russia’s first qualified central counterparty.

Japanese end users have started using the overnight indexed swap compound as an alternative to Libor as a discount rate benchmark to price over-the-counter and exchange-traded derivatives. According to a panellist at the International Swaps and Derivatives Association’s 2013 Annual Japan Conference at the Ritz Carlton in Tokyo today, the use of OIS, however, is seen as stopgap until a credible long-term solution is found.

JPMorgan has hired Dick Söderberg, an ex-interest rates trader at Barclays in London, as a fixed income trader, also based in London.

MarkitSERV, an electronic trade processing service for over-the-counter derivatives transactions, has handled more than USD1 trillion of swaps traded on all swap execution facilities since SEFs became operational on Oct. 2, according to Markit.

A potential mismatch could arise if Japan’s Financial Services Agency looks at using trust accounts for the segregation of client collateral when it implements the Basel Committee on Banking Supervision and the International Organization of Securities Commissions’ margin requirements for non-centrally cleared derivatives, according to market officials.

Barclays is recommending a zero-cost positive carry trade whereby investors sell euro 3m*3y versus U.S. dollar 3m*3y.

The results of the Global Derivatives Survey have been revealed. Subscribers can view the rankings of sellsiders, interdealer brokers and law firms active in the global derivatives market.

Nomura’s hybrid structured products business is growing in Korea, with investors looking to products that combine credit, rates, equity and fx underlyings, according to John Goff, head of global markets structuring in Hong Kong. The business is partly driving higher structured product revenues for Nomura in Asia.

Bank of America Merrill Lynch has hired Snigdha Singh, ex-interest rates trader at HSBC in London, as head of sterling rates trading.

VTB Capital has hired Dimitrios Kavvathas, the ex-co-head of securities distribution and head of structuring, Asia Pacific ex-Japan at Goldman Sachs, as head of global markets for Asia Pacific in Hong Kong.

Wells Fargo has joined U.S.-based futures exchange Eris Exchange to provide liquidity and clearing services to clients globally.

The central banks of the U.S. and Japan will not be required to comply with EMIR reporting and clearing requirements after the Council of the European Union approved a European Commission act calling for their exemption.