Derivs - Interest Rate

Members of designated contract markets or swap execution facilities not registered or required to register with the US Commodity Futures Trading Commission will not need to store electronic text messages.

Dovish comments from the People's Bank of China (PBoC) on Tuesday fuelled more concerns about the state of the Chinese economy. This has triggered good receiving in CNY swaps, particularly in the short end, and the curve has steepened accordingly, writes Deirdre Yeung of Total Derivatives.

Concerns about the Chinese economy have flattened the 1s/10s swap curve over the past month. Despite last week's injections of funds by the People's Bank of China (PBoC), foreigners have been paying in short CNY swaps to bet on a reoccurrence of last May's tax-related funding squeeze, writes Deirdre Yueng of Total Derivatives.

Stronger than expected PMI data has prompted some paying interest at the front end of the CNY swap curve. However, 1s/5s swaps are currently too flat and may attract curve steepeners. Separately, Nomura has recommended paying the front end of the CNH CCS curve, writes Deirdre Yeung of Total Derivatives.

The European Securities and Markets Authority has floated a number of options in determining reasonable commercial basis within MiFID II, including having data suppliers’ price lists subject to full transparency and imposing specific high-level limits whereby market data services, as a proportion of total revenues, would not exceed a certain percentage.

Bloomberg has launched its own swap data repository, serving as a centralized record keeping facility for interest rate, credit, fx, commodity and equity swaps transaction data.

Lawyers have called on the European Securities and Markets Authority to scrap the frontloading window entirely after the regulatory body wrote to the European Commission requesting the window be shortened earlier this month.

NLX is planning to launch options on a range of interest rate futures this summer after reaching a 30-day moving average of 15% market share in Euribor.

RBS remains committed to OTC client clearing in asset classes outside interest rates after announcing on Monday that it is quitting the rates prime brokerage business.

Complex package transactions may be difficult to price electronically now that the package transaction requirement to trade such products on swap execution facilities is live, according to Nathan Jenner, coo of fixed income, currency and commodity trading at Bloomberg.

A weak Chinese housing report has supported concerns about the economy and triggered receiving interest in swaps. With short-end downside limited at current levels, the 1s/5s curve has flattened, writes Deirdre Yeung of Total Derivatives.

Singapore Exchange's CCP has cleared more than $3 billion notional worth of Malaysian Ringgit and Thai Bhat non-deliverable interest rate swaps since the products launched a month ago.