Derivs - Interest Rate

Tullett Prebon has launched an aggregated feed of swap data repository data for the interest rate swaps market, in a bid to increase price transparency by combining standardised post-trade data with pre-trade bids and offers.

Volumes of package transactions, or derivatives with more than one leg, declined in the US on Monday as rules governing their mandatory execution over swap execution facilities came into effect.

Short CNY rates are lower and swaps have been offered after a warning from the People’s Bank of China (PBoC) on funding costs. Five to ten year offers have also been supported by renewed economic growth concerns, which are expected to flatten the 1s/5s curve over the medium term, writes Deirdre Yeung of Total Derivatives.

LCH.Clearnet’s application as a central counterparty under the European Market Infrastructure Regulation has been approved by the Bank of England.

China’s seven day repo rate fixed unchanged at 3.2% on Thursday, regardless of the People’s Bank of China (PBoC) pumping Rmb104bn of funds into the system this week.

This week the People’s Bank of China (PBoC) released details of China’s latest monetary easing move, a targeted reduction in the reserve requirement ratio (RRR) for certain financial institutions, writes Maia Ririnui of Total Derivatives.

A rapidly approaching deadline for the mandatory clearing of onshore CNY interest rate swaps (IRS) threatens market access for a number of large international banks. Earlier this week the People’s Bank of China (PBoC) detailed China's latest targeted easing move, but the rates market kept its focus on recent strong data, writes Maia Ririnui of Total Derivatives.

Company-wide IT expenditure at ICAP rose by 4% to 16% of revenue in 2014, due in part to the company's SEF build out.

Firm Chinese inflation data backed paying in mid-sector CNY swaps on Tuesday and the 1s/5s curve steepened as a result. In the long end, 10 year swaps were better offered as short positions were closed, writes Deirdre Yeung of Total Derivatives.

Trad-X, the interest rate swaps trading platform run by Tradition, has hit record trading volumes for dollar IRS, with volumes exceeding $290 billion since the inception of $ products in February 2013.

A stronger than expected Chinese trade report has backed an improvement in risk sentiment and paying across the CNY swap curve. Short-end long positions have been trimmed ahead of price data on Tuesday but the 1s/10s curve has steepened on the long-end sell-off, writes Deirdre Yeung of Total Derivatives.

Derivatives market participants have eliminated $114 trillion in notional principal since the resumption of TriOptima’s triReduce compression cycles within LCH.Clearnet’s SwapClear service in December 2013.