Derivs - Interest Rate

Singapore’s Economic Development Board is approaching U.S. corporate treasurers to pitch the city state as location for their treasury trading desks.

Lawyers say the exemptions for settlement of derivatives trades under a proposed Chapter 11-like law in Hong Kong are too narrow and could put swap counterparties in Hong Kong at a competitive and cost disadvantage.

Investors should outsource their collateral management operations in the post-reform OTC market, even if they feel it is a core competency, according to panelists at Financial Technology Forum’s OTC Derivatives Operations and Processing Conference today.

An independent study conducted by the International Swaps and Derivatives Association and Atrevida Partners revealed split-second and accurate pricing of interest rate swaps by the dealers involved.

The Securities and Exchange Commission will look at how circuit breakers work in the equity market, before thinking about adopting them in the over-the-counter derivatives markets, according to Chairman Mary Schapiro.

David Bizer, chief administrative officer of Nomura’s wholesale division in London, is reportedly set to leave the firm in the next few weeks.

The New York Portfolio Clearing, a joint venture between the Depository Trust and Clearing Corp and NYSE Euronext, plans to clear over-the-counter interest rate swaps with cross-margining capabilities by the end of next year.

Paul Bowmar has joined BNP Paribas in New York as head of fixed income CVA trading and credit/rates/fx hybrid trading for the Americas, according to an internal memo seen by Derivatives Week.

The unlimited liability model mandated by Japanese law for central counterparties could add systemic risk and lead dealers to take riskier positions, according to bankers and lawyers at the International Swaps and Derivatives Association Annual Regional Meeting in Tokyo.

Akihiro Wani, a partner at Linklaters in Tokyo, questioned the need for mandatory clearing of iTraxx Japan under the derivatives law reform in Japan from the viewpoint of efficiency at the International Swaps and Derivatives Association Annual Regional Meeting in Tokyo.

The International Swaps and Derivatives Association has come out with best practices for settlements and interest compensation claims for over-the-counter derivatives.

Philippe Moryoussef, managing director and head of interest rate derivatives at Morgan Stanley, has left the firm.