Derivs - Interest Rate

A group of clearing houses this week announced the results of risk management process tests that simulated the default of a major derivatives clearing member.

The European Security and Market Authority (ESMA) closed the consultation period on trading obligations for derivatives this Monday — but with implementation due in January, many of those affected are still concerned.

Deutsche Boerse has signed a partnership with risk and trade technology firm Risk Focus that will help with OTC trade reporting systems required under MiFID II.

A US court has dismissed claims against HSBC, interdealer broker ICAP and trading platforms provider Tradeweb for unlawful collusion in the interest rate swaps market. However, claims against 10 other banks are still being tried.

The end of Libor moved from committee group debate to hard reality on Thursday as the Financial Conduct Authority’s chief executive Andrew Bailey gave the reference rate a five year deadline for removal.

CME Group will start offering derivatives on the broad US Treasuries repo financing rate, which will replace Libor in many contracts, as soon after the start of the daily publication of the rate as possible. This is expected to be in the first half of 2018.

Deutsche Börse reported second-quarter earnings on Wednesday that showed increased trading of interest rate derivatives offset lower activity in equity and index derivatives.

The Commodity Futures Trading Commission has this week issued a letter extending no-action relief for non-US dealers still working to comply with transaction-level swap requirements.

Eurasian Development Bank (EDB) has become the first international financial institution to gain admission to the Moscow Exchange (MOEX) derivatives market.

The European Securities and Markets Authority (ESMA) on Thursday announced a new cooperation agreement with the Securities and Exchange Board of India (SEBI), that will secure it information on the ongoing compliance of Indian central counterparties (CCPs) with European Union regulation.

The Chicago Mercantile Exchange (CME) this week cleared its first Korean won and Indian rupee OTC currency swaps, taking its clearing offering for interest rate swaps to 21 currencies.

Capitalab, a BGC Partners division, has extended the compression service it operates to include a combined cycle for swaps and option positions.