Derivs - Interest Rate

The Royal Bank of Scotland in Japan will retain the ability to structure hybrid structured products that reference equity and fixed income, such as dual range accruals, despite the firm’s recent announcement to move out of equity.

As strategists expect a further sell-off in euro rates driven by better macro data or by a repricing of U.S. rates, Deutsche Bank recommends entering EUR three-month forward 5s30s bear steepeners for zero-cost.

Hong Kong’s Legislative Council is set to debate key legislation on Wednesday that will govern the city’s mandatory over-the-counter derivative G20 commitments.

Derivatives Week is unveiling its Global Derivative Award winners in two stages this year. First up are the winners of the Global Derivatives Editorial Awards determined by the editorial team. The winners of the bank, interdealer broker and law firm awards will be decided by the results of the Global Derivatives Survey. The survey runs until July 22 for the bank and law firms, and runs until July 29 for the interdealer brokers.

As structured note issuance tapers out over the coming months, creating a shortage of vega supply, strategists at Barclays suggest taking a long position in euro 5y*5y rates through calendar spreads.

The Monetary Authority of Singapore has proposed requiring reporting of derivative positions over SGD8 billion (USD6.3 billion) for non-financial specified persons.

European regulators must take into account how adopted asset segregation models will fit alongside the bankruptcy code, according to Ted Leveroni, executive director, derivatives strategy and external relations at Omgeo.

China’s Supreme People’s Court is unlikely to interpret the nation’s bankruptcy law, clarifying provisions similar to close-out netting arrangements, ahead of an actual bankruptcy case, despite active lobbying for judicial guidance from the nation’s regulators.

Strategists at the Royal Bank of Scotland are recommending a bearish sterling rates trade in selling 6m5y payers and buying 6m10y payers.

Important questions must be addressed before the U.S. can finalize substituted compliance, according to Commissioner Mark Wetjen of the Commodity Futures Trading Commission.

Li-Woon Lim, co-head of fixed income, currency and commodity trading at UBS in Singapore, is to leave the firm later this month.

The Hong Kong Monetary Authority has selected 16 dealers whose quotes will contribute to the new offshore yuan interest rate benchmark, with the first fixing expected June 24.