Derivs - People and Markets

Distributors of structured products and funds in Australia are hoping upcoming revision of the Future of Financial Advice reforms by the new government will promote greater volume in their industry.

The Korea Exchange will divide membership of its over-the-counter derivatives clearinghouse into two categories, which will see foreign entities allowed to access the CCP indirectly as customers via Korea-based brokers.

The U.S. Commodity Futures Trading Commission’s one-month delay for registered swap execution facilities from any enforcement under the SEF rules with regard to market participants who trade on such SEFs isn’t long enough for the industry.

Nick Perry, director in equity derivatives sales at Bank of Montreal in New York, has joined Wells Fargo in a similar role.

Alok Modi, director in long-end and STRIPS trading at Barclays in London, is joining Morgan Stanley as head of government bond and credit default swap trading for Europe.

Buysider margin needs to be segregated for non-centrally cleared derivatives, Aron Landy, chief risk officer for Brevan Howard, told the 34th Burgenstock annual global derivatives markets conference in Geneva last week. Guus Warringa, chief legal counsel and board member at Dutch pension fund APG Asset Management, agreed.

Thomson Reuters has been temporarily approved as a swap execution facility by the Commodity Futures Trading Commission.

The Shanghai Clearing House and the People’s Bank of China are set to meet mid-October with China’s top legislature and judiciary bodies in a bid to iron out netting and bankruptcy rules, according to lawyers.

Interoperability of global clearing models is not only undesirable but could kill product innovation, said Phupinder Gill, ceo of CME Group, at the 34th Bürgenstock annual global derivatives markets conference in Geneva.

The capital cost of clearing for banks could lead end-users to create shadow-banking entities to clear trades, according to panelists.

Migrating clients onto newly-approved swap execution facilities could take months, despite the U.S. Commodity Futures Trading Commission Wednesday deadline for swaps trading to be moved onto the platforms.

The European Commission will not agree to delay the start of reporting exchange-traded derivatives to trade repositories, according to Stewart Macbeth, president and ceo of the DTCC Derivatives Repository.