Europe

Intercontinental Exchange has added Goldman Sachs as the third clearing member of its ICE Clear Netherlands subsidiary.

Banca Monte dei Paschi di Siena (MPS) was unmistakably clear when spelling out the terms of a debt-for-equity swap this week: if bondholders don’t volunteer to be bailed in, the bank will be placed in resolution and they will have no choice. But creditors are not the only ones who are worried as the world’s oldest lender teeters on the brink — the whole Italian banking system is holding its breath.

The European Commission has called for a fiscal expansion of up to 0.5% of GDP in the eurozone next year — but there is scepticism over whether the recommendation will be adopted by member states.

We noted last month that realised volatility in the European investment grade CDS market, as measured by the Markit VolX index, was at its lowest for two years. By the end of October, volatility had dipped to 18%, which was the lowest level since the heady days of June 2007. A number of future events were mooted that had the potential to trigger market uncertainty, including next month’s Italian referendum.

Primary bond markets have a new code of practice, released as part of the legacy of the Fair and Effective Markets Review. The draft standard, released on Friday morning, is supposed to apply to issuers, investors and underwriting banks in the wholesale fixed income markets in Europe, and, unlike other practice guidelines, applies across investment grade, high yield, securitization and emerging markets.

Warehouses De Pauw, the Belgian warehouse company controlled by the De Pauw family, has successfully raised €178m through an overnight capital increase to finance the acquisition of new warehouses in the Netherlands.

Bankers have lauded a decision by the European Securities and Markets Authority this week to propose a two year delay to rules requiring smaller financial counterparties to centrally clear derivatives trades.

Commodity trader Gunvor increased its European revolving credit facility by around 50% to meet oversubscribed commitments, having also grown its $725m working capital loan after strong demand.

The leveraged finance market has been met this week by a raft of mergers and acquisitions, with four deals announced and several major leveraged buyouts poised for action. Considerable ground needs to be made up, however, if new paper is to offset the glut of repricings that have choked the market in recent months.

The UK’s chancellor of the Exchequer Philip Hammond is expected to announce a "fiscal reset" when he delivers his autumn statement on November 23 that could include financing plans to pay for infrastructure investment.

The European Commission has called for a fiscal expansion of up to 0.5% of GDP in the eurozone next year — but there is scepticism over whether the recommendation will be adopted by member states.

French media group Vivendi braved the euro bond market on Thursday as the sole corporate to issue a primary deal, as wary investors held firm on their demand for high concessions.