Derivs - Interest Rate

TP ICAP, the inderdealer broker, on Monday revealed that it has promoted from within and made new hires for its institutional services division.

Barclays reported annual results on Thursday, revealing the huge scale of the firm’s trading balance sheet expansion in 2017, as it scales back up in its historical strength of macro trading. But the low volatility last year weighed on returns, and the growth in the trading book has yet to deliver the profits it hopes for.

Deutsche Boerse's new CEO, Theodor Weimer, said this week that, given the low market volatility of 2017, there were "headwinds" for the exchanges group, but that there was opportunity heading into 2018.

London Stock Exchange Group's CurveGlobal, an interest rate derivatives platform, on Monday said it would launch a three-month futures contract based on the benchmark rate set to replace sterling Libor, in the second quarter of 2018.

The International Swaps and Derivatives Association has hired Regnosys, a finreg company, to develop the conceptual design of the trade association’s common domain model into digital format.

Christopher Giancarlo, the chairman of the Commodity Futures Trading Commission, will visit European regulators in London, Brussels, Frankfurt and Madrid next week in an attempt to defuse European efforts to alter unilaterally the supervision regime for foreign clearing houses.

Corporates have been considering using options to hedge their FX exposure ever since the International Financial Reporting Standard 9 came into effect this year. But interest has been slower to build than some experts had expected.

Investors who financed bearish European equity positions with US short volatility strategies have been burned as the S&P 500 continued its downward trend on Monday, and realised volatility spiked.

EU Parliament rapporteur Danuta Hübner has written a draft report that emphasises the need to "mitigate the discretionary nature" of a draft plan that could force large non-European Union central counterparty clearing houses (CCPs) to relocate to inside the bloc.

The chief strategy officer of Eurex Clearing, Matthias Graulich, has dismissed claims that euro interest rate swap clearing costs would increase substantially if moved to the EU 27 from London, noting that liquidity indicators for the product are already improving at Eurex.

Shanghai Pudong Development Bank is set to open its newly authorised UK branch for business next week, with initial plans for wholesale banking and vanilla securities trading.

A report published by the UK House of Lords on Saturday encouraged the government to “resist” new European Commission measures to relocate systemically important clearing houses in London to EU member states.