Derivs - Interest Rate

The International Swaps and Derivatives Association wants greater clarity on a number of issues surrounding amendments to Canada’s insolvency code and its relationship with derivatives, including an expanded definition of financial collateral and clarification of termination rights.

The latest China GDP data has triggered good paying at the short end of the CNY swap curve. 2s/5s swaps are flatter, however, as the front end has been underperforming other maturities on the sell-off. Nomura has recommended exiting paid positions in five year NDIRS, writes Deirdre Yeung of Total Derivatives.

The US Commodity Futures Trading Commission has issued a private consultation paper to swap execution facilities that seeks to standardise data the facilities produce on their over-the-counter derivatives trading volumes.

Barclays launched on the NASDAQ Stock Market in New York Tuesday an exchange-traded note that will track the Barclays Inverse US Treasury Futures Composite Index.

Overall credit default swaps notional that was reported to swap data repositories last week rose 49%% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rates derivatives trading that was reported also rose by 22%.

The US Commodity Futures Trading Commission has given three separate depositories relief from providing the regulator with certain information about customer assets.

Markit aims to become fully compliant with the International Organization of Securities Commission’s principles for financial benchmarks by the end of the year.

The US Commodity Futures Trading Commission has put on hold issuing permanent registration for over-the-counter derivative swap execution facilities, as the new chairman and commissioners take up their posts and review the regulator’s processes.

Data surrounding swap execution facilities is increasingly becoming more accurate regarding the levels of trades executed on platforms, as the Futures Industry Association eliminates duplicate trade data.

Mid-sector CNY swaps were subject to foreign receiving interest on Thursday in the wake of the Federal Open Market Committee (FOMC) minutes released overnight in the US. The offers have backed some flattening momentum in 2s/5s and this has made some players rethink curve steepening trades, writes Deirdre Yeung of Total Derivatives.

Easing liquidity conditions after the passing of the quarter-end are expected to combine with China's improving economic outlook to support steepening momentum across the CNY swap curve. On these grounds Barclays has suggested a 1s/5s NDIRS steepening trade, writes Maia Ririnui of Total Derivatives.

The longevity swap market has seen increased volume within the last four months, with between four-to-five transactions being placed.