Derivs - People and Markets

Regulatory co-ordination between different authorities in Canada has helped market participants implement the trade reporting rules for over-the-counter transactions that came into effect on October 31.

LCH.Clearnet has partnered with Baltic Exchange and Cleartrade Exchange to clear OTC commodity derivatives as block futures in dry bulk freight forward agreements (FFAs). This move has been driven by market demand as participants adapt their trading strategies in the face of regulatory hurdles.

Shane Edwards, ex-global head of equities structuring at UBS in London, has been appointed head of global equity derivatives, effective this month.

Overall credit default swap notional that was reported to swap data repositories last week decreased by 40% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rate derivatives trading that was reported was also down by 18% from the previous week. This follows a week of sizeable increases in trading volumes in both CDS and rates.

The Singapore Exchange logged record volume of derivatives transactions in November with daily average trading volumes up 45% year-on-year, following the launch of the Shanghai-Hong Kong Stock Connect last month. This was primarily driven by FTSE China A50 futures and SGX FX futures in the Indian rupee and renminbi.

Michael Davie, CEO of LCH.Clearnet Limited, has been appointed group chief operating officer in a newly created role. Martin Pluves, COO of the firm, will replace Davie as CEO.

The International Swaps and Derivatives Association has elected Eric Litvack, managing director and head of regulatory strategy for Société Générale’s global banking and investor solutions business, as its new chairman. He will take over from current chairman Stephen O’Connor, on January 1, 2015.

The International Capital Markets Association’s secondary bond markets liquidity survey shows the sellside is “surprisingly not as despondent as it could be”, as dealers adapt to the new business environment and revise how they charge for balance sheet. Although liquidity has grown far worse since the crisis, bond traders large and small still have strategies to stay in the business and have adapted to some of the challenges of regulation.

Tullet Prebon has acquired PVM Oil Associates, adding substantial energy trading capacity to the firm’s product and services offerings. Tullett Prebon’s ability to trade oil-based over-the-counter derivatives contracts will be substantially improved, as will its ability to expand into futures and physical options broking.

Front end volatility trades in G10 currency pairs are likely to trend in the first quarter of 2015, particularly in the euro against the dollar, as strategists expect any significant spot movements in the pair to occur in Q1.

GFI Group has launched dollar-denominated market agreed coupon (MAC) swaps on its swap execution facility. The firm now offers live tradable prices for such contracts in a central limit order book on its electronic trading platform known as RatesMatch.

Overall credit default swap notional that was reported to swap data repositories last week increased by 63% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rate derivatives trading that was reported, was also up by 28% from the previous week. This follows a week of modest decreases in trading volumes in both CDS and rates.