United States

US bank bosses, facing investors at results announcements this week for the first time since Donald Trump’s election victory, tackled questions about whether the post-Trump optimism was justified — and how their businesses would benefit from easier regulation and lighter taxes.

London based clearing house LCH made further inroads into the US this week, with the Commodity Futures Trading Commission (CFTC) giving LCH.Clearnet and its clearing members permission to portfolio margin customer positions.

The derivatives market obtained its strongest sign yet that US regulations are soon to move in a more trading friendly direction, with J Christopher Giancarlo not only confirming that he is the acting chairman of the Commodity Futures Trading Commission but also indicating that he will soften rules governing variation margin posting and swap execution facilities.

Activity in the US dollar bond market slowed to a standstill this week as earnings blackout periods kept corporate America on the sidelines.

Wall Street banks celebrated a surge in earnings by flooding the dollar market with multi-billion dollar trades featuring callable tranches this week.

Donald Trump could end up being China’s best friend following his comments this week that the dollar is too strong. If the US president elect decides to engineer a weaker dollar, it would help solve China’s most imminent issue — capital outflows.

Pattern Energy Group is planning to print its first corporate bond this week with a $350m high yield offering that will primarily finance acquisitions of wind power projects from its developer-sponsor, Pattern Development.

On Wednesday, Citi reported a boost in profit during the fourth quarter of 2016, propelled by increased trading activity in light of year-end political uncertainty.

Morgan Stanley reported a jump in profits and revenue in the fourth quarter of 2016, as activities in the bank’s trading group propelled it to a strong finish to the year.

Plans for the Chicago Board Options Exchange to link up with Bats Global Markets took a big step forward this week, with both sets of shareholders approving the exchanges’ merger and a motion to issue shares supporting the deal.

Credit Suisse has named two bankers co-heads of global leveraged finance.

The US Commodity Futures Trading Commission has given LCH.Clearnet and its clearing members permission to portfolio margin customer positions.