Derivs - Interest Rate

End users are refraining from entering topside options on the euro/Swiss franc this week, despite technical factors supporting the trade in addition to comments from a Swiss government official on Monday suggesting a higher re-peg of the currency around CHF1.35-1.40.

The International Islamic Financial Market and the International Swaps and Derivatives Association have developed a standard Islamic confirmation template for profit rate swaps.

Markus Ferber, MEP and member of the European Parliament's Economic and Monetary Affairs Committee, has published a long-awaited draft legislative report on the Markets in Financial Instruments Directive.

The U.K.’s Financial Services Authority said it may investigate banks for allegedly mis-selling interest-rate swaps after a media outlet provided information about such activity to small businesses.

Standard Chartered is advising investors to enter a Malaysian ringgit-denominated two-year, five-year interest rate swap steepener, with a target of 60 basis points and a stop loss of 10 bps.

CME Group said it will begin offering portfolio margining of over-the-counter interest-rate swap positions and Eurodollar and Treasury futures for house accounts on May 7.

Hong Kong regulators are expected to ditch the originate-or-execute booking model for mandatory central clearing when findings from the recent consultation on the new rules are released at the end of the month.

VTB Capital has recently hired Barin Yucemen as global head of fx and rates in London.

Standard Chartered strategists are advising investors to buy a six-month U.S. dollar, Chinese onshore yuan non-deliverable forward outright, with an entry at 6.2740 and an exit at 6.3165.

BNP Paribas in Tokyo is looking to add staff to its Japanese interest rate options trading desk in Q2 after losing staff last year.

A first-of-its kind closed-end fund from Eaton Vance could siphon off high-net worth investor appetite from the structured notes market, structuring officials say, noting the fund provides a payoff profile similar to a structured note but has daily collateralization and spreads counterparty credit risk across multiple issuers.

Some credit valuation adjustment desks may hold back on trading contingent credit default swap indices because of uncertainty over how much Tier 1 capital they will need to cover their exposure.