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Overall credit default swap notional reported to swap data repositories last week increased 34% from the previous week, according to data from the International Swaps and Derivatives Association. This follows two weeks of a consistent uptick in CDS notional, with a combined increase of 64%. Overall interest rate derivatives that was reported, only increased by 5%.

Hedge funds have been taking profit or closing out long vanilla and exotic options trades on the US dollar against the Japanese yen as spot on the pair has continued its uptrend over recent weeks.

Concerns are mounting in the derivatives market and beyond that it is all starting to feel a bit like 2007 as market players pile into ever-riskier trades and strategies — in turn devouring greater amounts of precious capital — in a bid to overcome the deleterious effect of an enduring era of low volatility and rates on P&L targets.

US investors aiming to play the eurozone recovery are increasingly looking at the Eurostoxx50 via structured products with so-called airbag features that provide a buffer against depreciation.

Insurance companies have been picking up hybrid structured products, combining both equity and interest rates, in a bid to gain better returns in the low volatility environment.

LCH.Clearnet’s global interest rate swap clearing platform, SwapClear, has launched a new blended compression service in response to a growing need for more efficient use of capital and reduced operational risk.

ForexClear, LCH.Clearnet’s fx clearing service, has expanded its range of clearable currencies to include the Peruvian nuevo sol in response to both member and client demand.

Swap execution facility TeraExchange has launched the first regulated platform for bitcoin derivatives and a spot bitcoin price index in response to growing demand from global merchants, payment processors, miners and hedge funds for an efficient hedging tool.

The Chicago Board Options Exchange is in talks with the Financial Industry Regulatory Authority regarding an agreement for FINRA to provide certain regulatory services to the CBOE and C2 options markets.

Fx volatility, particularly in sterling, has increased on the back of increased options trading due to the uncertainty of the outcome of the upcoming Thursday Scottish referendum. This comes following months of historically low fx vols and a continued slump in trading volumes.

Overall credit default swap notional reported to swap data repositories last week increased 33% from the previous week, according to data form the International Swaps and Derivatives Association.

Increased trading activity in the fx options market, particularly in G10 currency pairs, has resulted in a significant spike in volatility following months of low fx vols and trading volumes.