Derivs - Interest Rate

Bank of England governor Mark Carney welcomed parts of the European Commission’s draft proposals on euro clearing this week while warning against relocating the activity from its base in London.

Hong Kong Exchanges and Clearing — HKEX — on Monday hired Roland Chai from London-based clearing house LCH.Clearnet, and appointed him to the positions of COO of its clearing division, and head of clearing risk solutions.

The European Securities and Markets Authority (ESMA) on Monday said that it would not extend the trading obligation deadline for certain counterparties under the Markets in Financial Instruments Regulation (MiFIR).

Dexia Crediop notched up another victory in its long-running swaps dispute with the Municipality of Prato this week, as the English Court of Appeal decided in the bank’s favour.

BME Clearing, the clearing division of Spanish exchange business Bolsa y Mercados Españoles, has reached an agreement for its technology to be used in the Colombian interest rate swap market.

The Futures Industry Association (FIA) on Wednesday released a statement arguing that this week's European Commission proposals, which would allow continental regulators to force clearing houses' relocation to the EU, will create market disruption.

The Hong Kong securities and futures commission — HKSFC — has entered into an agreement with the Australian securities and investments commission — ASIC — to establish a framework for cooperation on fintech.

The European Commission on Tuesday sent the strongest signal yet that continental politicians will work to wrestle euro clearing activity away from the UK as its exits the European Union.

The International Swaps and Derivatives Association (ISDA) has advised European Commission officials against legislating to relocate the clearing of euro denominated products to the Eurozone.

The major derivative exchanges' May volume figures have shown increased activity despite low volatility across markets, with European exchanges posting higher activity than their US counterparts.

Bank of China and Standard Chartered (China) completed the first interest rate swaps under China’s new repurchasing fixing rate (FDR) on May 31. Experts say the recently introduced rates will better reflect liquidity in the market and work in the favour of foreign banks.

An Italian judge has ruled in favour of Dexia Crediop bank in a criminal case that could have significant implications for similar derivatives disputes.