Derivs - Interest Rate

NASDAQ OMX and LCH.Clearnet have received regulatory approval to launch the NLX market, which will offer trading of short-term interest rate and long-term interest rate euro- and sterling-denominated listed derivatives.

The Royal Bank of Scotland is recommending investors enter a Eurodollar future butterfly and condor structure to take advantage of recent market dislocations.

Newedge’s U.K. and U.S. businesses have joined LCH.Clearnet SwapClear to clear listed interest rate swaps.

The Reserve Bank of India is looking to improve the availability of long-term over-the-counter fx forwards by developing the country’s money market and interest rate swaps market, making it easier to price forwards with tenors greater than one year.

Standard Chartered has completed its first one-year China offshore yuan Hibor fixing interest rate swap with a Hong Kong based corporate client.

Algorithms or expert judgment should be used when there is insufficient relevant transactional data to compile a benchmark, according to George Handjinicolaou, deputy ceo and head of Europe, Middle East and Africa at the International Swaps and Derivatives Association.

Corporates and banking client interest in offshore China yuan Hibor interest rate derivatives, such as swaps, options and forward rate agreements, is increasing prior to the benchmark’s first fixing in June, according to Standard Chartered.

Nomura has hired Tom Haskins as managing director and head of fx sales for the Americas, and Eric Miller as managing director and head of interest rates sales for the Americas.

The international reach of Dodd-Frank may result in Brazilian businesses choosing to hedge with a non-U.S. firm to avoid any regulatory burdens involved in complying with U.S. regulation.

The continued increase in swaption volatility on the Japanese government bond yield has created an opportunity for investors to enter a straddle play, according to strategists at JPMorgan.

An amendment that would have reviewed a rule in the U.S. that requires investments firms to request a quote to buy or sell derivatives from three dealers—an automatic increase from two dealers—has been rejected by the U.S. Commodity Futures Trading Commission.

The planned financial transaction tax could lead to direct costs as high as EUR40 million if those corporates are defined as financial institutions under the terms of the tax, according the European Association of Corporate Treasurers.