Derivs - Interest Rate

Caps on ownership limits for swap dealers on clearinghouses will reduce the interest of dealers in getting involved in creating efficient clearinghouses, Don Thompson, associate general counsel at JPMorgan, told delegates.

Risk needs to factor in to how regulators define block trades, industry players are saying. Block trades will get to delay reporting and/or fewer disclosure requirements, under new standards.

Legislative proposals for the over-the-counter derivatives market released today by the European Commission lack specific detail and will create uncertainty in the market, according to industry officials.

Disclosing too much derivative trade information could expose counterparties, hurting their ability to trade and as a result reducing liquidity.

Raphael Masgnaux, global head of financing trading at BNP Paribas, has moved from Paris to New York, according to an internal memo seen by Derivatives Week.

Citi has hired Magnus Ljungblad for its London office to trade Skandinavian bonds and interest rate swaps across currencies.

The National Futures Association and the Commodity Futures Trading Commission are in talks about giving the Chicago-based self-regulatory organization oversight of swap execution facilities, or SEFs.

The City of London, which accounts for 43% of the value of over-the-counter derivatives traded globally, is losing out on attracting financial services startups due to industry fears over the outcome of regulation aimed at derivatives and short selling.

The gross outstanding notional of over-the-counter interest rate derivatives jumped from USD449.202 trillion as of June 30 to USD465.163 trillion as of July 31.

Markit is rolling out a new MBX agency mortgage bond index that caters to investors looking for exposure to both interest-only swaps and principle-only cash flows.

Forward rate agreements grew by 132% to USD601 billion over the past three years, driving the growth in OTC interest rate derivatives during the period.

Crédit Agricole CIB has named Frédéric Lainé as head of the firm’s financial institutions group for international client coverage in Asia ex-Japan.