Derivs - People and Markets

The US Commodity Futures Trading Commission (CFTC) has added to the push for cross-border harmony with European Union regulation by approving a substituted compliance framework for central counterparties that are also registered in Europe, thus freeing them up from the restrictive burdens of double regulation.

High yield credit has enjoyed a sustained rally over the last five weeks and investors have taken advantage through exchange traded funds.

Deutsche Börse and the London Stock Exchange Group have agreed terms for an all-share ‘merger of equals’, in a push for European derivatives dominance that turns up the pressure on US rivals.

A broad estimate of derivative market sentiment rebounded in March, but remains well below historical average levels.

CME Group has agreed to integrate truePTS, the post-trade business that was spun off from swap execution facility trueEX in December, into its preferred global network of regulated trade repositories.

Options traders are increasingly pricing renminbi in line with G7 foreign exchange, a trend that could boost the intensity of swings in market positioning, strategists have warned.

Markit has launched a service that allows banks to affirm over-the-counter foreign exchange trades executed by interdealer brokers.

Intercontinental Exchange has begun clearing the iTraxx Australia and Asia ex-Japan Investment Grade credit default swap indices, as well as six individual sovereign credits in the region.

Buried in a hay bale of legal documentation last week, the European Union’s final draft of margin rules for uncleared swaps contained a joke that is sure to needle major banks. The question is whether anyone, including regulators, will still be able to smile at it when the September 1 deadline passes.

Proposed changes to US financial adviser rules could ban options use in retirement accounts, leaving investors exposed and quashing a growing market.

In a reversal of fortunes, asset managers became net buyers across major commodities this week, responding to tightening credit spreads.

TriOptima the over-the-counter post-trade service provider, has torn up more than $750tr in notional principal outstanding contracts since it launched its compression service for OTC derivatives in 2003, the firm said on Monday.