Derivs - Interest Rate

Market participants should support efforts by the Securities and Exchange Commission and Financial Industry Regulatory Authority to implement consolidated audit trails for futures and options trading, said William Brodsky, ceo of Chicago Board Options Exchange at the exchange’s Risk Management Conference in Dana Point, Calif., earlier this week.

Members of the European Parliament yesterday aired concerns that exemptions to the European Market Infrastructure Regulation proposed by MEP Werner Langen would water down the legislation.

Hedge funds in Australia would have to disclose much more information about their derivatives use under a recently-floated consultation paper from the Australian Securities & Investments Commission.

BNP Paribas is planning to launch a service allowing private banks and securities firms to input electronically preferences for a structured product and get a price.

BNP Paribas in New York is working on structuring variable constant maturity swap cap options for insurance companies looking to hedge lapse risk, or the risk that policyholders will redeem policies on the back of rising interest rates, according to James Davison, head of rates and fx structuring at the firm in New York. Firm officials think the structure is the first of its kind.

Hapoalim Securities is working with an issuer on retail structures that take a view against inflation rising in the U.S., in contrast to prevailing retail market sentiment over the past two weeks, according Rick Cabanes, senior v.p. of the structured products group in Los Angeles, Calif.

Onshore central counterparties may be more practical for Asian countries in which that country’s currency is not openly traded, according to Thomas Treadwell, head of over-the-counter client clearing for Citi Asia Pacific in Hong Kong.

The International Organization of Securities Commissions is considering setting out a principle that electronic trading platforms of over-the counter derivatives should accept multiple dealers.

Inflation swap trading has increased over the past few weeks as pension funds have moved to hedge against the risk of rising prices.

Banks who already hold a derivatives license in China will automatically be granted an ordinary license under new rules, according to a Chinese-language question and answer released by the China Banking Regulatory Commission.

Swaps counterparties would be blocked from using updated and improved valuation methods, under a proposal by the Commodity Futures Trading Commission. They’d also get locked in to prices on the swaps that reflect the mid-market point, not actual traded prices, say lawyers and advisors in New York.

New York hedge fund Ore Hill Partners will deploy interest rate swaptions, credit default swaps and currency options in a new fund. Ore Hill Japan Credit Opportunities Fund is being launched after the positive performance of the strategy in the firm’s Ore Hill Fund attracted investment, a firm portfolio manager told Derivatives Week.