Derivatives
FCA to probe possible conflicts in barrier options
The UK's Financial Conduct Authority will examine possible conflicts in the trading of foreign exchange options; some participants avoid these products in thinly traded markets
LCH rebuffs fears of NDF clearing crunch
Esma's most aggressive timeline could force more than 100 firms to clear NDFs from September 2015, with ForexClear the only currently authorised European CCP
French regulator finds market manipulation using Emir data
Europe's derivatives reporting regime needs work, but the AMF has already used the data to identify market manipulation, which is now being investigated
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…
Global trade reporting ‘a mess', Sibos delegates told
DTCC and Commerzbank tell Sibos delegates that global derivatives trade reporting requires further regulatory intervention to be a success
Taiwan fixing could fragment offshore renminbi liquidity
Latest CNH fixing will be a boon for Taiwan’s derivatives market, but concerns have emerged over the potential silo-isation of the renminbi market
Best swap execution facility: GFI
Markets are going through a perfect storm as regulation, a cyclical downturn and low volatility dampen activity
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
Clearing costs creep up for clients
Some futures commission merchants are raising fees for clearing and collateral transformation services, buy-siders say
Currency derivatives - regulating with consistency
The chief executive and chairman of the Wholesale Markets Brokers' Association (WMBA) say regulatory complexities have left market participants in the dark on derivatives
European Commission launches consultation on FX definitions
EC consultation in response to ESMA's letter dated February 14
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
India reverses curbs on USD/INR trading
India's financial regulator has rolled back emergency measures it introduced last year as USD/INR rate stabilises
OTF transparency waivers survive final Mifid debate
European disclosure regime for derivatives platforms diverges from that in US
StanChart looks to eclipse rivals in OTC derivatives
New 'Eclipse' business under Andrew Sterry and Luke Brereton will focus on execution, clearing, liquidity and portfolio services in over-the-counter derivatives
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
Libor scandal makes it tougher to hire forex traders
Banks are staffing up for a livelier foreign exchange forwards market, but taint of Libor rigging is limiting pool of new traders
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