Currency Derivatives
Corporate hedgers count costs of volatility
Recent volatility in foreign exchange markets has created a tough hedging environment in major currencies, says British American Tobacco's dealing room manager
Hildebrand scandal leaves Swissie expectations broadly unchanged
Swiss National Bank expected to hold EUR/CHF floor following governor's resignation, but an increase from 1.20 might now be delayed
Political crisis in Europe brings volatility back to FX options
Volatility returned to eurodollar last week as FX traders priced further downside risk into euro options
Eurozone deal brings relief in FX spot and options
Risk sentiment appeared to make a comeback in FX markets yesterday as options volatility fell from record highs and the euro rallied in response to the deal announced after the Euro Summit in Brussels
Options traders braced for further SNB intervention
Demand has switched from downside EUR/CHF options to upside options in anticipation of further Swiss franc weakening measures from SNB, say senior options traders
CNH deliverable forwards in Hong Kong could outgrow NDFs
Rising offshore renminbi interbank rates in Hong Kong have made its deliverable forwards market the cheapest way for corporates to hedge, compared with NDFs and onshore forwards, say bankers
Société Générale to provide options liquidity to FX Bridge
French bank is integrating systems with US-based vendor’s ProTrader Plus platform
Forex options clearing complicated by guaranteed settlement requirements
CPSS-Iosco guaranteed settlement requirements make FX options clearing more difficult, say participants
Trade associations lobby for clarity on extraterritoriality
Eight trade associations lobby Geithner and Barnier to address extraterritorial concerns
FXCM and SuperDerivatives to launch options platform within days
Deal-X platform will launch with three liquidity providers on July 14, to be followed soon after by SurfacExchange's Surface Wave venture
European Parliament rejects Swinburne’s forex exemption
Crucial plenary vote on Emir on July 5 retains suggested amendments to recognise unique nature of FX derivatives, but stripped out explicit calls for an exemption
Hong Kong fixing sets benchmark for CNH spot
Hong Kong interbank participants have created the first US dollar/offshore renminbi price fixing, giving the city first-mover advantage in renminbi products such as derivatives
Spot USD/CNH fixing in HK poised to become derivatives benchmark
Hong Kong interbank participants have created the first US dollar to offshore renminbi price fixing giving the city first-mover advantage in becoming an offshore centre for renminbi products such as derivatives, say market participants
Econ in favour of FX exemption
European committee favours US plans to exempt currency derivatives from clearing requirement
Two sides to every argument
May in perspective: participants hope the US Treasury will hold by its proposed exemption, despite several calls for further independent analysis of the FX market
Industry welcomes European Parliament recognition of FX
Amendments in Econ version of regulation stress the importance of settlement risk and existing market infrastructure
JSE to launch exotic can-do currency options
Move follows the successful launch of any-day expiry options in February
FX derivatives volume grew by 9% in H2 2010, says BIS
Total notional OTC volume across asset classes rose by 3%, having contracted by 4% in the first half of the year
Deutsche and Barclays sweep into CNH derivatives
Banks both now offer offshore renminbi trading in spot, forwards and swaps on their FX platforms after new launches over the past fortnight
Clearing discussion still in flux, says Esma chair
In his first public speech since becoming head of key regulatory body, Steven Maijoor gives no hint as to whether FX swaps and forwards might be exempted from mandatory clearing
SGX to clear FX forwards despite possible Treasury exemption
SGX to add new currencies and asset classes, including FX forwards, to OTC clearing service
Alpari launches FX options platform
Platform launched on March 9 to execute vanilla options trading strategies
European Parliament committee accelerates on derivatives reform
Committee members will discuss draft report today and have until March 15 to suggest amendments
European Parliament and Council on collision course over FX exemption
The top European Union institutions in Brussels have found themselves at odds over the crucial question of whether foreign exchange contracts should be subject to new rules for mandatory clearing and reporting of over-the-counter derivatives in the…