Derivs - Interest Rate

The asset management arm of Leonteq Securities has launched tracker certificates on its Dynamic Real Income Index. The certificates aim to provide returns that outpace the rate of inflation in major western economies.

Deliverable swap futures could boost liquidity in derivatives markets and lead to a healthier industry going forwards, Jeffrey Howard, managing director and global co-head of prime services markets at RBS Securities, told the Bürgenstock global forum for derivatives markets in Geneva today.

Chris Wait, global head of fixed income sales at Standard Chartered in Singapore, is leaving the firm.

Short-term equity-linked and fixed coupon notes are the most traded structured products among Asia-based users of deritrade, Bank Vontobel’s electronic structured products platform.

Regulators must create a harmonized, robust derivatives system across domestic borders to avoid a race to the bottom on issues such as margin requirements, according to Martin Wheatley, chief executive of the Financial Conduct Authority in London.

The International Swaps and Derivatives Association plans to rival EURIBOR and LIBOR when it rolls out new methodology for the way it calculates the benchmark for interest rate swaps in Q1 2014, according to Edward Ocampo, chairman of ISDA’s benchmark committee.

Wells Fargo has requested that the European Securities and Markets Authority enables third country branches to choose which regulation transactions should be subject to when entering derivative contracts between local branches of third country entities.

ANZ has become the first Australia-based member of LCH.Clearnet’s SwapClear interest rate swap central clearinghouse and has cleared its first trade.

Macro Risk Advisors, a boutique broker-dealer based in New York, has hired Danny Dayan as an interest rate strategist, in a newly created role.

With U.S. forward rates close to returning to normalized levels, Credit Suisse expects a further substantial sell-off to be led by the shorter end of the curve, and is therefore touting being short 1y1y against 5y5y conditionally, via three-month mid-curve payers.

The Korea Exchange is conducting research to determine which non-deliverable forward currency pairs, in addition to Korean won and U.S. dollar, the bourse’s central clearing counterparty will clear when the service starts in 2014.

Should derivatives regulation differ between provinces in Canada, then it could result in market participants having to comply with rules in more than one province and disincentivize dealers from transacting with counterparties based in Canada, according to market participants. Regulators in Canada, however, are aiming for the provincial rules to be identical.