Derivs - Interest Rate

UBS’ Neo platform has stood out in the market in providing clients with access to multiple swap execution facilities without clients needing to become a direct participant of a SEF; the first dealer to provide such SEF services in the new market structure. The platform gives clients access to greater liquidity, while reducing the legal burden that derivatives regulation has imposed on market participants. The innovative solution, coupled with the positive feedback from buyside market participants, is the reason why UBS Neo was crowned Electronic Trading Platform of the Year at the 2014 GlobalCapital Americas Derivatives Awards.

Trad-X's Euro Short-End offering, the first hybrid central limit order book to provide trading in euro short-end products, has already matched orders approaching €35 billion.

Tradeweb has introduced more functionality in regard to streaming prices on its swap execution facility in order to provide market participants with quicker access to prices. This, among other areas of its product offering, is why Tradeweb received Global Capital’s SEF Platform Of The Year award as part of its Americas Derivatives Awards.

S&P Dow Jones Indices’ recent push to become a fully-fledged player in the fixed income marketplace, in addition to its strong presence across other asset classes, was lauded by market participants. That drive the firm’s achievement in winning the 2014 Global Capital Americas Index Provider Of The Year award.

Front-end CNY swaps were bid today amid further upward momentum in the fixings. However, 1s/5s swaps steepened up as 5-year swaps underperformed the shorter-end. New rules by the Chinese regular will help bolster capital ratios for the big banks, writes Deirdre Yeung of Total Derivatives.

CME Group has called on the US Commodity Futures Trading Commission to allow all derivatives clearing organizations to commingle portfolio margining funds in connection with futures contracts.

To benefit from the low levels of volatility in the euro, Barclays is pitching a trade whereby investors sell 1x2 EUR payer spreads; therefore, positioning for a near-term sell-off in rates.

Worries over a funding squeeze amid tax payments from Chinese corporates supported good paying at the front-end of the CNY curve and 1s/5s swaps flattened out by a few basis points. In the research, Nomura strategists favour receiving CNY - despite tight swap spreads, writes Deirdre Yeung of Total Derivatives.

Overall interest rate derivatives and credit default swaps trading that was reported to the swap data repository between April 14--19 significantly decreased from the previous week, according to data from the International Swaps and Derivatives Association.

European regulators have proposed a full ban on the re-use of initial margin in the EU.

More weak Chinese data have added weight to expectations the PBoC will ease the reserve requirement ratio (RRR). This has supported good offered-side interest in short CNY swaps which has, in turn, exerted steepening pressure across the swap curve, writes Deirdre Yeung of Total Derivatives.

CNY swaps have been well offered as the market anticipates a weak domestic GDP report later this week. Short-end swaps have seen particularly good interest to receive. China Unicom issued a CNY4bn 3y Dim sum bond while Gazprombank is planning a return to the market, writes Deirdre Yeung of Total Derivatives.