Derivs - Regulation

Scott O’Malia, Republican commissioner at the Commodity Futures Trading Commission in Washington DC, has resigned after four and half years, effective August 8.

The International Swaps and Derivatives Association has published recommendations for an updated version of the Financial products Markup Language, also known as FpML version 5.7.

Dan Day-Robinson, founder and former chairman of GT & GE Group Geneva, has been appointed as a member of the board and vice chairman of the Swiss Futures and Options Association.

Markit is developing a service that will manage the exercise processes and provide electronic legal trade confirmation for fx options. The post-trade service will also help participants reduce operational risk and become more efficient in their management of fx options trades.

The Ontario Securities Commission has released a second set of amendments to its rule on Trade Repositories and Derivatives Data Reporting that will allow parties to designate a single reporting party for dealer-to-dealer trades and for non-dealer-to-non-dealer trades.

Overall credit default swaps notional that was reported to swap data repositories last week dropped by 17% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rates derivatives trading that was reported, however, remained relatively flat.

LCH-CME basis swaps, where one counterparty pays a fixed rate on a swap cleared on LCH.Clearnet’s SwapClear versus receiving a fixed rate on a swap cleared by CME Clearing, and vice versa, are to grow in frequency as dealers seek to balance exposure between one or more central counterparties, writes Beth Shah.

Overall credit default swaps notional that was reported to swap data repositories last week increased by 4% from the previous week, according to data from the International Swaps and Derivatives Association. Overall interest rates derivatives trading that was reported, however, dropped by 12%.

Tighter Chinese liquidity conditions backed a bid in short CNY swaps on Thursday. A continuation of this pressure is expected to drive flattening pressure across the 2s/5s slope into the end of the quarter. Meanwhile, Nomura has outlined a short-end CNH IRS trade idea, Moody's expects China's credit ratings to withstand the rebalancing challenge and the UK has tightened its CNY trading ties, writes Deirdre Yeung of Total Derivatives.

This week the People’s Bank of China (PBoC) released details of China’s latest monetary easing move, a targeted reduction in the reserve requirement ratio (RRR) for certain financial institutions, writes Maia Ririnui of Total Derivatives.

A rapidly approaching deadline for the mandatory clearing of onshore CNY interest rate swaps (IRS) threatens market access for a number of large international banks. Earlier this week the People’s Bank of China (PBoC) detailed China's latest targeted easing move, but the rates market kept its focus on recent strong data, writes Maia Ririnui of Total Derivatives.

The Basel Committee on Banking Supervision’s text on non-modellable risk factors is too prescriptive and rigid, and could prevent the appropriate use of data, according to a number of industry associations.