Derivs - Interest Rate

Investors have been shorting the New Zealand dollar against the U.S. dollar via forwards over recent days as a hedge against flatteners on the New Zealand rates curve. This strategy has received increased interest since talk of tapering the U.S. bond buying program began and some emerging market funds were deploying the strategy prior to the Kiwi spurt. Now investors are looking at other overvalued G10 currencies.

The Bank of Thailand has lifted its offshore investment quota for both institutional and non-institutional investors, making it easier to invest in exchange and over-the-counter derivatives and other instruments.

Goldman Sachs’ net revenues in equities, excluding reinsurance, jumped 23% year-on-year, driven by higher net revenues in derivatives and cash, according to its Q2 2013 earnings.

The U.S. Commodity Futures Trading Commission issued late Monday night an update to its latest cross border swap exemptive order, giving a reprieve to foreign branches of U.S. swap dealers located in jurisdictions, such as Singapore, that were not covered in the original order issued late last Friday.

Ray Joseph, cio and executive director at the Office of the Special Trustee at the U.S. Department of Interior for the state of New Jersey, has joined Barclays’ as a director in investor solutions, in New York.

Institutional investors are showing interest in a novel interest rate risk premium strategy from Société Générale following the selloff in G10 rates in May and June, according to strategists at the firm.

Australian entities registered with the U.S. Commodity Futures Trading Commission as swap dealers will need to report over-the-counter derivative trade information for certain asset classes to licensed Australian repositories from Oct. 1 this year.

The U.S. Commodity Futures Trading Commission has included collective investment vehicles, including hedge funds and commodity pools, in its definition of what it considers a U.S. person in its interpretative guidance regarding the cross-border application of the swaps provisions of Title VII of Dodd-Frank.

Barclays is recommending duration-neutral 10v2 flatteners in cross-currency swaps to position for a further depreciation in the Turkish lira, which could lead to a further flattening in the CCS curve.

The U.S. and E.U. regulator deal announced today stating their mutual understanding on cross-border derivatives rules should help protect firms from overlapping regulatory requirements and increased costs.

Deutsche Asset & Wealth Management has launched the first synthetic exchange-traded fund tracking Indonesian rupiah-denominated Indonesian sovereign bonds on the Singapore Exchange.

Clearinghouses must execute their right to reject certain swaps in order to manage risk effectively on balance sheets and avoid a “race to the bottom in clearing,” according to the head of CME Group.