Derivs - People and Markets

As the UK’s EU referendum approaches, associated uncertainty has seen risk in the sterling corporate bond market rise, with liquidity taking a blow.

HSBC has created the new role of head of corporate and institutional digital, which will be filled by Niall Cameron, who had been head of global markets EMEA.

Deutsche Börse and the London Stock Exchange Group (LSE) have confirmed that they will hold a merger vote after the UK’s referendum on European Union membership on June 23, having previously said that Brexit would harm rival US bids, but not their own plans.

The European Securities and Markets Authority (ESMA) is stepping up regulatory oversight of contracts for difference and other products it deems ‘speculative’ that are sold to retail investors.

Tullett Prebon, the interdealer broker, has hired a global head for its alternative investments division and, separately, has become the first platform to send a swap execution facility (SEF) trade for clearing in Japan.

Gordon Dadds, a law and professional services firm, will begin offering a derivative documentation managed service as part of a newly launched consultancy business.

Law firm Norton Rose Fulbright has hired a derivatives and structured finance to its Singapore office as partner.

A key measure of US market volatility has hit its lowest point for a year, suggesting traders are counting on the recent calm to continue, with no shocks or surprises.

As the state of Illinois faces one of the worst budget standoffs in its history, some lawmakers are proposing a tax on derivatives that one advocate called the "single-bullet solution”.

In this round-up, the Shanghai-Hong Kong Stock Connect see steady volumes on its southbound channel, the Sino-German exchange in Frankfurt marks its first six months and HKEX offers new details on its expanded RMB futures. Plus, a recap of GlobalRMB’s top stories this week.

Recent troubles at Lending Club have only compounded risk in the peer-to-peer credit market.

Communication between foreign exchange market participants remains essential, the Bank for International Settlements said on Thursday, as it published a global code of conduct aimed at restoring confidence that the market can be “robust, fair, open, liquid and appropriately transparent”, despite recent scandals.