Derivs - People and Markets

The expected closing date of a loan to finance a 379 mile transmission line in Chile has been pushed back as negotiations over interest rate swap provisions continue.

The European Parliament will fast-track its approval of margin rules for uncleared swaps, adding certainty to the deadline for implementation but also accelerating the workload for the first wave of major banks that will need to comply.

Mexican peso futures surged on Monday following the second US presidential debate, rising to their highest level in almost a month as Republican candidate Donald Trump failed to knock a dent in Hillary Clinton’s polls lead.

trueEX, the interest rate swap trading platform, claims to be the first swap execution facility to execute dealer to client Brazilian real interest rate swaps.

Forwards and Futures trading will form a big part of a fund that Franklin Templeton Investment has launched, which focuses on long and short term exposure to global currencies in both developed and developing markets.

There was both palpable relief and vexation among derivatives market professionals this week as the European Commission approved, albeit with amendments, rules for collecting margin on uncleared derivatives. Although this traversed a key hurdle as Europe seeks to catch up with Canada, Japan and the US, it also brought into question why there had been a delay in the first place.

Numerous press articles in recent years have predicted the death of single name credit default swaps. Onerous capital requirements, costly changes in market structure and alternative hedging tools have all been cited as factors driving the inexorable decline in the product.

Volume figures released by major derivative exchanges show that low volatility continues to subdue volumes in equity derivative products, although flows improved in September. Interest rate, metal and energy derivatives show growth, however.

Deutsche Bank, its balance sheet and the market it operates in are worlds away from where major financial institutions stood in 2008 — so those scaremongering either have their own incentives for doing so or should know better.

The European Commission has approved, with some amendments, rules for collecting margin on uncleared derivatives, traversing a key hurdle as Europe seeks to catch up with Canada, Japan and the US.

Post-trade reporting of non-equity trades under MiFID II will be too onerous and expensive for single services, known as consolidated tape providers (CTPs), the European Securities and Markets Authority has said, suggesting instead that specialisations for a number of different instruments — including derivatives — be allowed.

Tullett Prebon is set to lose its European chief executive, who becomes the second senior departure in the past week from a planned Tullett-ICAP combined group as the two interdealer brokers look to merge by the end of this year.