Derivs - Interest Rate

A new stress test for systemically important financial institutions has been outlined by risk academic Darrell Duffie, professor at Stanford University.

Fewer swaps than Congress and the public expect may end up getting traded on exchanges or through swap execution facilities, according to a Securities and Exchange Commission official.

Centrally clearing over-the-counter derivatives trades will raise costs for established asset managers, at least in the short run, said panelists at the Osney Media Optimising OTC Derivatives Operations in Fund Management conference in London this morning.

The International Swaps and Derivatives Association has kicked off a working group devoted to updating its Financial products Markup Language software’s reporting view.

A key component of the China’s derivative market development plan is avoiding mistakes seen in the U.S., Xuecheng Jing, the former deputy director of the research bureau at the People’s Bank of China said at the Derivatives Asia 2010 conference in Beijing this week.

Zack Ling, a managing director in public market investment at China Investment Corporation, one of China’s largest sovereign wealth funds, said that derivatives are a necessary part of every institutional investor’s portfolio.

Daiwa Capital Markets is in the process of applying for a license to trade over-the-counter derivatives in Korea. Its the latest move in expanding throughout Asia ex-Japan, said Dominique Blanchard, global head of derivatives in Hong Kong.

Interference by politicians over how central counterparties calculate their margin requirements and operate risk management systems could lead to such institutions being built up as ‘too big to fail,’ according to Sharon Bowles, chair of the European Parliament’s Economic and Monetary Affairs Committee.

The Royal Bank of Scotland has sold USD15 million callable capped constant maturity swap rate steepener notes maturing in 2030.

Notional outstanding over-the-counter derivatives have risen over the past three years, with the falling amount of credit derivative outstanding more than offset by growth in interest rate contracts.

Keith Noyes, regional director for the Asia Pacific at the International Swaps and Derivatives Association in Hong Kong sat down for a wide-ranging interview with Eleni Himaras, senior reporter and Hong Kong Bureau Chief for Derivatives Week.

The most viable model for clearinghouse interoperability in the Asia Pacific region would be one in which regional clearinghouses became members of a so-called super-central counterparty, Keith Noyes, regional director of the Asia Pacific for the International Swaps and Derivatives Association in Hong Kong, told Derivatives Week in an wide-ranging interview.