Derivs - Interest Rate

MarkitSERV, the electronic trade processing service for over-the-counter derivatives from Markit, has connected to the Korea Exchange (KRX). It will allow 17 international and Korean banks that are MarkitSERV customers, as well as KRX members, to confirm and clear trades seamlessly.

Short-end CNY swaps have been offered on foreign profit-taking flows while data-related paying pressure from the mid-sector has steepened the 1s/10s curve slope, writes Deirdre Yeung of Total Derivatives.

Overall credit default swaps notional that was reported to swap data repositories last week fell 19% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rates derivatives trading that was reported also dropped by 28%.

Trad-X, the interest rate swaps trading platform run by Tradition, has hit a record notional high for dollar IRS in June, with volumes exceeding USD 50 billion, and the number of trades executed surpassing 750 trades. The trades executed electronically accounted for 33% of all US dollar trades at Tradition.

The smaller startup swap execution facilities are seeing some liquidity in their central limit order books, according to market officials.

The Autorité des Marchés Financiers has launched a public consultation as it looks to strengthen regulation surrounding regulated markets and multi-lateral trading facilities.

CNY swaps have been well bid as strong China PMI data has outweighed an easing of liquidity conditions as the dominant driver. The 1s/5s swap curve has steepened as mid-sector paying interest has had more impact on prices, writes Deirdre Yeung of Total Derivatives.

Credit Suisse plans to launched its swap execution facility aggregation service in August. The service will be offered via the firm’s existing e-trade platform PrimeTrade, which provides rates, fx and futures trading capabilities. Credit Suisse’s SEF aggregation service will deploy a sponsored access model, different from a similar service offered by UBS, which uses an introducing broker model.

ICAP’s iSwap platform has reported a new monthly record for US Dollar interest rate swap volume in June 2014. The platform noted 588 trades worth a notional value of $26 billion in June, representing 31% of all $ IRS trades at the firm.

The Alternative Investment Management Association, an industry association of global hedge funds, has published over-the-counter clearing guidelines for asset managers.

The Ontario Securities Commission has released a second set of amendments to its rule on Trade Repositories and Derivatives Data Reporting that will allow parties to designate a single reporting party for dealer-to-dealer trades and for non-dealer-to-non-dealer trades.

The US Commodity Futures Trading Commission has extended relief allowing some counterparties to mask their identities when reporting US trades to data repositories.