Derivs - Interest Rate

Nomura has hired Chris Cutt to trade USD interest rate swaps in London.

The planned retirement of Financial Accounting Standards Board Chairman Robert Herz has thrown proposed changes to derivatives accounting into question, as the exposure draft only passed the board by a 3-2 vote, with Herz in favor.

Morgan Stanley has issued USD100 million in a 20-year range-accrual step-up note referencing the S&P500.

BNY Mellon Clearing in New York is looking into clearing memberships with major clearinghouses to give clients access to over-the-counter interest rate swap and credit default swap clearing, Sanjay Kannambadi, ceo, told Derivatives Week.

A coalition of industry groups, including the Association for Financial Markets in Europe and the International Swaps and Derivatives Association, has expressed concerns about a single reporting regime for both transaction and position reporting on over-the-counter derivatives based on reporting through trade repositories.

The International Swaps and Derivatives Association and the International Islamic Financial Market will release in the next four to six weeks drafts of pro forma confirmation documents for Shariah-compliant currency swaps and profit rate swaps.

The Securities and Exchange Commission and the Commodity Futures Trading Commission should make sure to take into account collateralization when setting the threshold for who counts as a major swap participant, according to Philip McBride Johnson, of counsel with Skadden Arps Slate Meagher & Flom and a former head of the CFTC.

Barclays Capital has hired Marie-Laure Chandumont as a director in investor solutions focusing on cross-asset structures for insurance companies, a new position.

The U.S. Securities and Exchange Commission is investigating how registered funds make alternative investment decisions.

Limiting a clearinghouse member’s exposure to the CCP could limit that CCP’s ability to mitigate risk and manage a systemic failure in the event of a default, according to the Japan Securities Clearing Corporation.

JPMorgan has issued a slew of principal-protected notes and certificates of deposit, delta-one notes, and bespoke products on its rules-based Alternative Index Multi-Strategy 5 in recent weeks.

The increase in renminbi products permitted in Hong Kong will aid the creation of an offshore renminbi-linked over-the-counter derivatives market, according to lawyers and market practitioners.