Derivatives
Relief for dealers as Basel reins in capital for cleared trades
Basel Committee addresses long-standing complaints over default fund exposures and client clearing
FX clearing clock ‘ticking’ following CFTC-SEC swap ruling
Speakers at FX Week USA expect this week's agreement on swap definitions by the CFTC and SEC will drive a rush to comply with FX clearing mandates
Lack of governance to blame for Libor scandal, says IMF official
A failure of bank governance is behind the recent Libor rate-fixing scandal – and these kinds of failings could pose systemic risks, says José Viñals
Diverse netting approaches create OTC headache
A lack of legal statutes over netting in several Asian countries means OTC trades could become prohibitively expensive in a post-Basel III world, potentially pushing international banks out of some markets in the region
Prices diverge as CVA exemption remains in limbo
Dealers face pricing headache as they wait to see whether Europe's version of Basel III will exempt corporate customers from the CVA capital charge
CME client clearing hits two more currencies
Following the clearing of the first NDF trade through CME Group in late April, the exchange has cleared client trades denominated in Chinese renminbi and the Philippine peso over the past month
FXall unconcerned by late entry into FX options
FXall’s chief executive Phil Weisberg recognises the firm has moved into options later than some of its competitors, but believes it will add value by having options integrated into its platform
Libor manipulation lawsuits could cost banks ‘tens of billions’
Barclays' $450m settlement gives lawyers smoking gun evidence of attempts to tamper with benchmark rates
Investors seek alternative forex hedges for euro crisis
Australian dollar, renminbi and CE3 currencies touted as alternative macro hedges for European debt woes
Bank of England to post collateral in OTC derivatives trades
BoE thought to be the first major central bank to change policy on collateralisation as it seeks to reduce dealer funding charges
Volcker rule could hurt liquidity in FX spot market, participants warn
Foreign exchange swaps and forwards should be exempted from the Dodd-Frank ban on prop trading, or else liquidity in the spot market could suffer
FX Week China: CNH/CNY forward divergence threat has stabilised
A reversal of the spread between offshore deliverable forwards and onshore NDFs that caused pain for speculators last year is unlikely to recur, say economists
EU regulators prepare for frenetic countdown to Emir deadline
Senior officials expressed concern yesterday about the volume of work on derivatives reform that must be completed in a very short timeframe
No need for Sef Clarification Act, says CFTC's Gensler
Dodd-Frank requires transparency for derivatives trading, CFTC chair says - and final Sef rules will reflect that
CME kicks off client clearing ahead of competitors
CME stole a march on rivals when it cleared its first NDF last week, as the Brazilian real contract was a client trade
LCH.Clearnet splits default fund
UK-based clearer gets member approval to break up default fund - part of a package of measures responding to CFTC limits on clearing house membership criteria
Single-dealer platforms win out in electronic FX options trading
Forex option volumes and liquidity are increasing on electronic trading platforms, as providers push through the operational and competitive challenges of delivering streaming, executable prices to a diverse customer base. Despite apparent regulatory…
Brakes remain on FX options clearing, despite regulatory easing
CPSS-Iosco working group ruled last week that CCPs do not have to guarantee settlement, but participants recognise the issue still has some way to run before options can be centrally cleared
Isda working group close to finalising standard CSA
Latest proposal extends number of silos from five to 17, mirroring approach taken by LCH.Clearnet
Canada clearing paper will not address CCP location question
A consultation on OTC clearing is expected in the coming months, but a key question will not be answered
FXCM and SuperDerivatives to add new pairs to options platform
Since its launch in July last year, the DCX joint venture has now attracted nine liquidity providers and plans to add new emerging market pairs
Spotlight on: Valérie Perez, Deutsche Bank
Deutsche’s head of foreign exchange distribution for France, Benelux and Switzerland talks to Chiara Albanese about the changing demands of the bank’s corporate clients in continental Europe
Bank focus on new options platforms intensifies
Tradeweb recently became the latest technology provider to launch a multibank trading platform for FX options, as a handful of new platforms compete to harness liquidity in the product. More than a year since the first platforms went live, which ones…
Banks welcome Tradition-Icap’s volatility fix
The daily fix could pave the way to the creation of new volatility-based derivatives, say participants