Derivs - People and Markets

BNP Paribas has hired Baris Temelkuran as global head of G10 FX options trading.

David Puth, the CEO of FX settlement firm CLS, will step down from his position at the end of this month.

Nasdaq Clearing said early on Monday that it had replenished 90% of its member default fund, adding it had “no indication” that a member would shirk on its commitments. The deadline for replenishment is on Monday.

A Norwegian trader lost millions on Wednesday in a bad bet on the German and Nordic power markets, putting other members of Nasdaq Clearing on the hook for €107m in losses. The clearing house withstood the test to its capital buffers, but Nasdaq must be clear about what went wrong and what steps need to be taken to maintain confidence in its systems.

European banks helping the transition to alternative euro risk-free rates on Thursday chose the European Central Bank's euro short-term rate (Ester) as the preferred alternative to the euro overnight index average (Eonia).

French asset manager Axiom Alternative Investments has hired Laurent Henrio, the former global head of credit trading activities at Société Générale, to run a new fund buying illiquid credit exposures in banks’ trading books.

The Depository Trust & Clearing Corporation (DTCC) on Wednesday called for "esoteric" exchange traded funds (ETFs) to be “closely monitored” and for a further expansion of clearing of derivatives and cash markets.

Jörg Kukies, secretary of state at the German Ministry of Finance, suggested that the EU’s proposed covered bond directive should not dilute the quality of the product too much. He also wanted to see developments on the Capital Market Union (CMU) by the end of the year and called for an agreement on third-country central counterparties (CCPs).

Autorité des Marchés Financiers, the French markets regulator, has reemphasised the importance of a Europe-wide ban on binary options and restriction on contracts for difference.

More finance and derivatives industry groups this week came out against the leverage ratio and its impact on client clearing, backing the findings of an August report by global watchdogs. In a joint paper, trade bodies including the FIA also expressed concern over Brexit and its potential impact on client clearing.

Three executives from global bulge bracket banks have called for more supervisory cooperation over Brexit, particularly on the side of the EU. All three expressed hopes for a Brexit deal that was more bespoke than just third country equivalence.

BNP Paribas has appointed a senior banker from its ranks to head its FX prime brokerage business.