Derivs - Interest Rate

Dealers are exercising bargaining power and protecting against increased regulatory costs by charging more for non-cleared interest rate swaps, according to a new report by the Bank of England (BoE).

A note by law firm Mayer Brown has advised counterparties trading with International Swaps and Derivatives Association (ISDA) documentation to consider special amendments if they want their contracts to take into account the effects of negative interest rates, referencing a recent court decision.

World Bank took $1bn for its first trade linked to the Secured Overnight Financing Rate (SOFR) on Tuesday as bankers debated the best way to find fair value for the new product.

The Futures Industry Association (FIA) has called for greater transparency in efforts by US regulators to determine the method for calculating the notional threshold at which dealers have to be registered as swap dealers.

Financial resources dedicated to protecting central counterparties from defaults are becoming increasingly concentrated at two CCPs, according to a report by global watchdogs released on Thursday.

Electronic trading platform Tradeweb has enjoyed a huge spike in interest rate derivatives trading this year, reporting a 118% year-to-date increase in average daily volume for the products compared to 2017.

Interdealer broker TP ICAP revealed on Tuesday that it had chosen Paris as its post-Brexit hub in the European Union, as new CEO Nicolas Breteau called for the flexibility to pay company brokers the "market rate".

Dee Blake, the head of regulation at ICE Futures Europe, has left the company according to sources.

A research note by the Financial Conduct Authority (FCA) has concluded that the phase-in of initial margin requirements for non-cleared derivatives trades will largely fail to make the process “gradual” and easier to stomach for UK counterparties.

Deutsche Bank's decision to clear around half of its euro swaps business in Europe might have caused a stir in the Square Mile this week but a closer look at the overall clearing numbers show that London continues to dominate the global swap clearing markets, writes Ross Lancaster.

The Intercontinental Exchange has announced an October launch for two futures contracts that will reference the secured overnight financing rate (SOFR) that US market participants have chosen to replace Libor.

The US Commodity Futures and Trading Commission (CFTC) has granted a no-action letter to the Shanghai Clearing House once again, extending relief on its failure to register as a derivatives clearing organisation for another three years.