Derivs - People and Markets

Eurex has signed up Crédit Agricole Corporate & Investment Banking as a member of its clearing house for interest rate swaps.

The derivatives hedging strategies of big name oil producers in recent years have left them levered on swings in the spot price of oil — a position that makes them a risky but potentially lucrative bet for investors.

A landmark ruling this week that Novo Banco has not triggered a credit event will set a precedent for future European government interventions in banks, market participants said, but it could prompt further amendments to the International Swaps and Derivatives Association's (ISDA) credit definitions.

European credit and equity markets improved for a second day on Monday, after the European Central Bank said that it would consider further stimulus at the next meeting in March.

An external review to determine whether a credit event has been triggered on Novo Banco concluded on Monday, with market participants warning ahead of ruling that a disappointing result could undermine the credit default swap market.

The European Commission made the planned delay to the Markets in Financial Instruments Directive rules official on Wednesday, formally proposing an extra year before the rules need to come into force. The market had expected a delay, as regulators and market participants alike were set to miss the deadline to build and test technical systems.

European credit markets, led by the banking sector, have seen risk escalate over the past several weeks with the Markit iTraxx Europe Main index seeing its spread widen to the highs of June 2013. One bright spot however, has been the region’s sovereign credit, which has largely steered clear of the contagion that developed in the corporate market.

Financial market regulators finally have something to cheer about, after a host of recent setbacks, as Europe and the US this week took a big step towards aligning their treatment of central counterparties (CCPs). But the move could also heighten competition for clearing banks in Europe.

Nomura has hired James Milligan from HSBC as head of flow credit in global markets for EMEA.

Europe and the US have taken a big step towards cohesion on their treatment of central clearing counterparties (CCPs), with the European Commission and the Commodity Futures Trading Commission unveiling a common approach towards equivalence between the two CCP regimes.

CBOE Holdings said this week that the administration of the CBOE Volatility Index (VIX), its widely followed benchmark of short term options implied volatility, is now aligned to the Principles for Financial Benchmarks established by the International Organization of Securities Commissions (IOSCO).

Rich Ricci, the former chief executive of Barclays investment bank, has joined freemarketFX, a startup FX business, as chairman.