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  • Compression is behind a 3.6% drop in gross notional outstanding of interest rate derivatives between December 2013 and June 2014, according to the International Swaps and Derivatives Association, who said that the growth in services available at central counterparties and other portfolio compression providers combined with regulatory pressure is driving the trend.
  • Andrew Hauser, director of markets strategy at the Bank of England, said on Thursday market discipline must lie at the heart of attempts to fix conduct in wholesale markets.
  • Hong Kong has published its second consultation paper (CP2) on a resolution regime for financial institutions, as it readies itself for a new set of capital requirements – Total Loss Absorbing Capacity (TLAC). Market participants expect bond volumes to go up as banks prepare for the new regime, although for that to happen, the government will need to come up with answers to some tough questions, writes Rev Hui.
  • The Intercontinental Exchange Benchmark Administration (IBA) is reforming the methodology for the ISDAFIX derivative benchmark calculation, which represents a first ever move from calculating the rate on a submission-based panel of banks to tradable quotes listed on regulated trading venues.
  • Alberto Pravettoni, managing director and global head of exchanges at LCH.Clearnet in London, has left the firm.
  • Nasdaq OMX is working on a new model for collateral management at its clearing house, which could revolutionise the way clearing members handle the operational hurdles of individually segregating each client’s cash and collateral.