Derivs - People and Markets

The clearing arm of Eurex, the German derivatives bourse, is widening the scope of its partnership programme to cover repo and over the counter (OTC) FX markets.

The UK Treasury has published a draft statutory instrument that will allow UK authorities to properly oversee UK over-the-counter (OTC) derivatives markets in “any scenario” after the UK leaves the European Union.

London Stock Exchange Group on Friday announced that it would increase its stake in London-based clearing house company LCH Group by up to 15.1%, bringing its holdings to over 80%.

Friction is building in the FX derivatives market over the implementation of the Markets in Financial Instruments Regulation (MiFIR), with market participants confounded by European regulators’ instructions on how FX swaps should be reported.

The Basel Committee for Banking Supervision (BCBS) on Thursday launched a consultation to address a quirk of Basel capital rules reviled by many derivatives clearers.

US Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo has threatened to retaliate over European Commission legislation that Giancarlo thinks would result in “conflicting” and “overly burdensome” regulation from abroad.

The Bank of England has noted progress in the development of the sterling overnight index average rate (Sonia) as an approved alternative reference rate, while also flagging the continued production of long-dated contracts tied to Libor.

The UK Financial Conduct Authority (FCA) said on Wednesday that the financial services industry positively received its plans to automate regulatory reporting requirements in the main.

Rostin Behnam, a commissioner at the US Commodity Futures Trading Commission (CFTC) flagged potential issues in the governance and risk management of clearing houses (CCPs) on Tuesday.

The Bank of England announced on Monday a consultation on a package of measures to tighten its scrutiny of banks’ and other financial firms’ readiness for climate change. The Bank’s approach is gradualist, but it is signalling clearly that firms must take the financial risks from climate change seriously, and that regulation in this area will be ramped up.

Yves Choueifaty, founder and president of Tobam, talks to GlobalCapital about carbon footprints, public debt, cryptocurrencies, and how passive investment is "the only industry in the world in which people do nothing for a living and then they claim they are cheap".

There are more than $512bn worth of bonds that will need to switch to an alternative reference rate if global regulators execute plans to ditch the Libor benchmark by the end of 2021, Linklaters said on Wednesday. GlobalCapital asked the law firm what needs to happen for a successful switchover.