Derivs - Interest Rate

The Financial Stability Board’s (FSB) annual progress report, published on Tuesday, shows that during the last year there has been little progress in implementing agreed G20 reforms to over-the-counter (OTC) derivatives.

CME Group has reported record quarterly derivatives volumes in the Asia Pacific region along with an upturn in global trading volumes.

The UK’s Financial Conduct Authority has fined interdealer broker Tullet Prebon £15.4m over various alleged failings, including broker conduct. The FCA claimed “lavish entertainment” and a “lack of controls” had allowed improper trading to take place.

Antagonism between the United Kingdom and European Union in Brexit negotiations is making interest rate and credit swap market fragmentation more likely by the day, as market participants in both jurisdictions solidify backup plans to trade on US swap execution facilities (SEFs).

A new report from the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) has set out the governance of key over-the-counter (OTC) derivatives data elements.

The US Federal Reserve has given its final approval to amendments of the Volcker Rule, joining four other US regulatory agencies in backing relaxations of prop trading restrictions.

LBBW and JP Morgan have claimed first execution of an electronically negotiated euro short-term rate (€STR) swap transaction, on Bloomberg’s UK multilateral trading facility (BMTF).

TP ICAP Data & Analytics has launched a new data package covering African OTC markets, a move the interdealer broker claimed would bring increased transparency to Africa’s capital markets.

Tradeweb Markets has partnered with margin optimisation providers Cassini Systems and OpenGamma to boost its analytics proposition for interest rate derivatives trading.

The loan market still needs “much more work” in shifting away from Libor, as do its derivatives, the Bank of England warned on Monday.

Intercontinental exchange and MSCI have expanded their relationship, with the index provider licensing ESG data to ICE for index construction. ICE will use the data to launch ESG versions of its fixed income indexes and will also launch various ESG related equities futures towards the end of this year.

Steven Maijoor, chair of the European Securities and Markets Authority, has pointed to challenges on the path to reform of euro risk free rates, and highlighted fallbacks as his organisation’s most important next hurdle.