Derivs - Interest Rate

CME Europe is consulting with the derivatives market, having proposed to overhaul its exchange rulebook following reauthorisation under the European Markets Infrastructure Regulation (EMIR).

Timothy Massad, chairman of the US Commodity Futures Trading Commission, has resigned, with J Christopher Giancarlo widely expected to take up the job, fuelling hopes of a more flexible, market friendly approach to regulation.

Major derivatives exchanges have released figures showing growth over 2016 and in December, with big gains reported in some product lines.

Timothy Massad, chairman of the US Commodity Futures Trading Commission, has resigned, with Republican commissioner J. Christopher Giancarlo widely expected to take up the job.

The plans of London Stock Exchange Group and Deutsche Börse to pursue a merger of equals received a boost this week, as rival exchange Euronext agreed terms with the LSEG to buy its Paris clearing house business LCH SA in an all cash offer.

The Brexit vote and the election of Donald Trump laid bare the poor predictive power of the massed ranks of financial analysts and traders. But when these political cataclysms hit the screens, nothing broke. Everyone from the IMF down to the lowest financial scribbler has warned that markets are less resilient thanks to regulation — but in the turmoil following these votes, prices moved but institutions stayed solid. Owen Sanderson reports.

The upending of global financial markets in the second half of 2016, driven by shocks from the UK’s Brexit vote and US presidential election, has caused a breakdown in previously dominant cross-asset correlations and a sharp resizing of event risk in 2017. Dan Alderson reports on a wave of structured product innovation aimed at navigating this new and more volatile universe.

Cross-currency swap markets face a rough start to 2017. Traders fear that diverging central bank policy, a shift in corporate borrowing dynamics and a repatriation of US money will all upset the basis at different parts of the curve. Dan Alderson reports.

The European Securities and Markets Authority wants more convergence between central counterparties on how they comply with margin and collateral requirements.

The US Commodity Futures Trading Commission has given Goldman Sachs a $120m penalty for trying to manipulate dollar Isdafix and falsely reporting benchmark swap rates.

Eurex, the derivatives exchange of Deutsche Börse, has hired Lee Bartholomew and Zubin Ramdarshan to work on research and development for new derivatives products.

The International Organization of Securities Commisions, IOSCO, has identified various risks in how complex over-the-counter leveraged products are sold to retail investors.