Derivs - People and Markets

UniCredit released its fourth quarter results on Tuesday, but these did little to reassure stakeholders, who have already seen the bank’s share price fall this year to its lowest level since 2012. However, while the bank as a whole took a hit, its corporate and investment banking division (CIB) grew year on year.

US president Barack Obama is asking Congress to double funding, over the next five years, for Wall Street watchdogs through appropriations and user fees as he seeks to impose new liability linked fees on financial firms.

Tumultuous trading on Monday took credit spreads to some of their widest since 2013, in what was variously described as ‘great entry levels’ for new trades or a ratcheting up of pain for those already nursing bruises from last week’s debacle.

Derivatives market prices reflect growing uncertainty over the UK's forthcoming referendum on European Union membership, analysts said this week, even though the vote will not be held before June at the earliest and the Brexit campaign is widely expected to fail.

Markit is preparing to launch what it said will be the first tradable emerging markets interest rate swap index.

Credit and equity markets suffered a crisis of confidence this week, with several previously crowded trades rapidly unraveling in the face of rising concerns about European banks, US Federal Reserve policy and a perceived lack of European Central Bank firepower to revitalise the continent’s stagnant economy.

Commodity Futures Trading Commission (CFTC) chairman Timothy Massad has emphasised his "commitment to protecting commercial end-users from overly onerous regulatory burdens", drawing a sharp distinction between the core users of derivatives and the activities linked to the financial crisis.

Investors have been looking for ways to explain the poor performance of global banks this year. While negative interest rates in Europe and Japan have gained the attention of some, others are focused on bank exposure to the energy sector to explain low equity valuations.

Barclays will offload a legacy derivatives portfolio to JP Morgan as part of the British bank's plans to run down its non-core assets.

Tradeweb Markets has launched an electronic over-the-counter marketplace for US-listed exchange traded funds.

Law firm Fried Frank has hired an experienced specialist to set up a European restructuring practice.

January trading produced one of the most volatile starts to a year on record, with volumes in listed options and futures reflecting heightened activity.