Derivs - People and Markets

The future of cryptocurrency derivatives looked bright this week as digital currency exchange and clearing house LedgerX won its derivatives clearing organisation (DCO) licence, complementing the swap execution facility approval it received from US regulators three weeks ago. While the fledgling asset class still has a lot to prove, a united effort from US regulators could mean it will be difficult to slow its momentum.

The end of Libor moved from committee group debate to hard reality on Thursday as the Financial Conduct Authority’s chief executive Andrew Bailey gave the reference rate a five year deadline for removal.

The Commodity Futures Trading Commission (CFTC) on Monday granted LedgerX, a digital currency exchange and clearing platform, a derivatives clearing organisation license.

The European Securities and Markets Authority (ESMA) on Thursday announced a new cooperation agreement with the Securities and Exchange Board of India (SEBI), that will secure it information on the ongoing compliance of Indian central counterparties (CCPs) with European Union regulation.

The head of Société Générale’s equity and derivatives trading business in the UK, Dan Cohen, has decided to leave the company, GlobalCapital can confirm.

Renminbi non-deliverable interest rate swaps (NDIRS) have been well offered on easier liquidity conditions and a long-end outperformance has driven some curve flattening momentum on Wednesday. Despite this, sources see scope for the curve to flatten further. Offshore interest in CNY bonds is said to be growing, writes Deirdre Yeung of Total Derivatives.

Acting chairman of the Commodity Futures Trading Commission (CFTC) Christopher Giancarlo on Monday appointed Daniel Gorfine to serve as director of LabCFTC and as chief innovation officer of the regulatory authority.

The European Securities and Markets Authority (ESMA) on Monday reacted positively to last month’s European Commission proposal on third country central counterparties (CCPs), which offered the regulatory body more powers to supervise foreign clearing houses.

China’s State Administration of Foreign Exchange (Safe) says the country will not devalue the renminbi, Hong Kong’s renminbi deposits fall in May, and China welcomes Japan to participate in One Belt One Road (OBOR).

Hong Kong Exchange (HKEX)’s chief executive Charles Li opened trading for the first RMB denominated gold futures contract on the exchange.

Midclear, the custodian and clearing centre of financial instruments for Lebanon and the Middle East, has selected GMEX Technologies to provide the core system for Lebanon's first derivatives central counterparty (CCP).

Droit Financial Technologies has signed up five banks to Adept — its Market in Financial Instruments Directive II (MiFID II) trade compliance platform.