Currency Derivatives
JP Morgan and UBS compress FX books via start-up
NYC-based LMRKTS first broke cover two years ago; the third bank participant is unknown
Chinese corporate hedging costs soar after PBoC forex clampdown
Chinese corporates looking to hedge following last month's renminbi devaluation face 400bp price hikes because of a new PBoC rule forcing dealers to hold deposits against onshore renminbi-based forex derivatives
Difficult liquidity conditions are here to stay, say Asia conference panellists
Gapping moves in spot markets and higher prices for clients in FX derivatives are here to stay, as banks pull back from market-making in non-core currencies, panellists warn
Corporates face paper losses from renminbi slide
An intervention by China's central bank causes unrealised corporate hedging losses
USD/CHF options burn banks amid illiquid markets
Traders say dealers who lost money in last month's huge Swiss franc move are likely to have done so because liquidity evaporated, making it impossible to hedge sold options
Consultants fear mis-selling as forex brokers discover new options
Foreign exchange brokers – which execute spot and forward currency trades with smaller businesses – are now offering options-based structures to clients in the UK. Consultants worry about the potential for mis-selling as the trades they are seeing are…
Dealers still dominate activity in complex FX instruments- BIS
Findings contrast with latest Triennial Survey flagging non-dealer market participants as key drivers of growth
Asset quality trumps hedging cost in volatile currencies
High cost of hedging out forex exposure in volatile currencies is unnecessary due to the correlation between the underlying asset and currency it is denominated in, investors believe
Tarf trouble in Taiwan: Sliding renminbi threatens heavy losses
Derivatives linked to the US dollar-renminbi exchange rate have been successful during the Chinese currency’s four-year rise. But now it is sliding, corporate users are looking at heavy losses
Panel clashes on best execution and NDF clearing in Boston
A panel at the annual FX Invest conference in Boston tackled the difficulties of NDF clearing and best execution costs
FX structurers see mixed demand for cross-asset hedges
Increased hedging costs in rates and credit has led some investors towards FX structured products, but some remain concerned that correlation may not hold up
Saxo Bank adds ruble pairs to options platform
USD/RUB and EUR/RUB will be added today as the Danish bank answers increasing client demand for the ruble
Thomson Reuters acquires start-up options technology vendor
SigmaGenix, a London-based provider of FX options technology, has been acquired by Thomson Reuters and its chief executive Jeremy Gelber becomes global head of FX options
Dion rolls out RFQ system for FX options
Technology vendor aims to help clients, particularly second-tier banks, meet new regulatory requirements for options
Digital Vega to add non-deliverable options to Medusa
NDOs in testing on Medusa platform as some market participants begin to consider alternatives to deliverable FX options that could be more easily cleared
Options platform of the year: Digital Vega
Despite the challenges faced by multibank options platforms as a result of delays in regulation, Digital Vega has managed to build consistent liquidity on its Medusa platform
Thomson Reuters acquires Tradeweb FX options platform
Clients of the Tradeweb platform will migrate to FXall where they will get "more diverse access to liquidity", says chief executive Lee Olesky
BIS: FX OTC markets hold steady, despite regulatory uncertainty
Semi-annual BIS survey reveals a rise in FX OTC derivatives transactions in the second half of last year
Icap: Sefs could lead to ‘sub-optimal hedging’
Moving NDFs to trade on Sefs could mean less hedging at longer end of the curve, says senior executive at Icap
Tarns gain favour as investors seek to exploit range-bound pairs
Target accrual redemption notes have regained some popularity after losing favour during the crisis, but investors are keeping a firmer eye on the risks, say dealers
Corporates await final Dodd-Frank details as deadline approaches
As Dodd-Frank deadlines loom for corporate derivatives users, treasury desks with sophisticated FX hedging programs should be steadily adapting compliance systems. But with regulatory energy focused on swap dealers, corporates are still waiting for…
Digital Vega to add spot to Medusa options platform
FX options platform to add spot trading functionality this week in response to client demand, assisted by State Street-owned Currenex platform
SurfacExchange in acquisition talks
Multibank FX options platform confirms it has seen an 'uptick' in conversations over a potential acquisition, as rivals make tweaks to their ownership structures ahead of Sef registration race
360T licenses GFI Fenics for options pricing on Tex platform
The Fenics ePricer engine will support options trading on 360T's Tex platform as GFI Fenics broadens out its client base to multibank platforms