Top Stories

New buyside entrants and portfolio managers are increasingly using options on futures as a way to keep margin costs down while generating tailored risk exposure, providing an effective alternative to over-the-counter swaps and futures strategies.

LCH.Clearnet’s global interest rate swap clearing platform, SwapClear, is launching a portfolio margining service that will enable its members and their clients to maximise their margin offsets between over-the-counter and listed interest rate derivatives. As a result of this, users will be able to more efficiently manage their collateral obligations.

Risk arbitrage traders, among others, are betting on continued upside in General Electric by buying medium and long dated call spreads on the back of a speculative corporate split off, according to strategists.

The latest proposals from the Commodity Futures Trading Commission and a coalition of five US prudential regulators could make trading uncleared swaps in the US costly and ineffective, driving business away from the country.

LedgerX, a bitcoin derivatives clearing house and exchange, has entered into a new partnership in a bid to expand the accuracy of its options pricing while increasing liquidity for bitcoin derivatives.

Overall interest rate derivatives trading that was reported to swap data repositories last week increased by 14% from the previous week, according to data from the International Swaps and Derivatives Association.

Market participants have been picking up put spreads on the Australian dollar against the US dollar, however investors should be wary as the currency pair has the potential to fall lower than expected, according to FX strategists.

A proposed clearing mandate for Canadian derivatives markets is generating concern over which products are captured for clearing. The proposals could eclipse regulations in the EU and US.

Nasdaq OMX Clearing has received authorisation from the European Securities and Markets Authority to clear both exchange traded and over the counter FX derivatives. This means that Nasdaq is only the second central counterparty that is FX recognised under the European Market Infrastructure Regulation.

Tan Boon Gin, director of the commercial affairs department at the Singapore Exchange, has been appointed as chief regulatory officer effective June 15. This comes following the departure of Richard Teng.

The Chicago Board Options Exchange has entered into an exclusive agreement with the London Stock Exchange Group to develop and list options on FTSE and Russell indices. Additionally, the two firms will collaborate on new index options products.

Market participants in Europe are concerned over the definitions of request-for-quote and voice brokerage systems under the Markets in Financial Instruments Directive. The suggested definitions from the European Securities and Markets Authority would require the disclosure of provided quotes to the public, which could hamper liquidity.