Derivs - Interest Rate

UBS executed its first interest rate swap on behalf of a client via an anonymous swap execution facility order book late last week.

The International Swaps and Derivatives Association is looking for a benchmark administrator for ISDAFIX rates.

The Euribor steering committee must cut the number of its members who are directly or indirectly affiliated with banks, according to the European Banking Authority and the European Securities and Markets Authority.

Standard Chartered has been working with traditional financial institutions, non-financial institutions and corporates in regional jurisdictions such as Asia to educate them about European Market Infrastructure Regulation, ahead of bringing the first clients onto its execution, clearing, liquidity and portfolio platform Eclipse in the next few weeks.

Javelin swap execution facility has connected to nine clearing firms to allow post-trade clearing of interest rate swaps. The SEF has started sending trades for clearing at LCH or CME to Bank of America, Barclays, Citigroup, Credit Suisse, JP Morgan, Newedge, Nomura and RBS.

The buck, so to speak, does not necessarily stop with the individual who personally violates the U.S. Commodity Exchange Act, which regulates a wide array of commodities and financial derivatives trading, including swaps (in addition to traditional futures contracts and physical commodities trading) in U.S. markets or otherwise engaged in by or with any U.S. person. Rather, as illustrated by a recent court ruling permitting regulatory charges to go forward against the former CEO of MF Global, Jon Corzine, liability can extend to senior managers, even if they are not regulatory supervisors and have not culpably participated in any misconduct.

Tradeweb Markets has completed the first swap trade by a futures commission merchant on behalf of a U.S.-based asset manager on a swap execution facility. Credit Suisse used the firm's platform to execute a five-year high yield credit default index swap, which was cleared though ICE Clear Credit.

UBS has executed the first Eris standard swap future via the Chicago-based futures bourse Eris Exchange for a buy-side client.

Article 18 of China’s 2006 Enterprise Bankruptcy Law could impede the Shanghai Clearing House’s attempt to close-out positions should an interest rate swap become insolvent, despite recent guidance from Chinese authorities over the application of close-out netting rules, according to Linklaters.

Barclays is backing a strategy for investors looking to take a short duration view on sterling rates by buying a 2y-5y constant maturity swap floor spread, funded by selling out-the-money curve caps.

Westpac has hired Alex Tam, former regional head of business development, Asia Pacific, global trade and receivables finance at HSBC, and Steven Yu, the ex-head of trade finance and cash management corporates at Deutsche Bank, to new roles in Hong Kong.

Jalal El Hazzat, ex-head of interest rate swaps trading at BNP Paribas in New York, has reportedly left the firm.