OTC derivatives
LCH SwapAgent processes first cross-currency basis swap
It is the first non-cleared trade to be transacted as LCH STM, SwapAgent’s settlement-to-market legal and operational framework
CME launches analytics tool with Kalahari
Shows pricing of CME FX futures compared with OTC prices; can be broken down into spot, forwards and swaps
MarkitServ rolls out workflow automation for cross-currency swaps
Enhanced service launched in conjunction with CLS and LCH
Angel CoFund invests in OTCX
The OTC derivatives-trading platform receives backing from the investment fund
River and Mercantile opts for OTCX
Asset manager seeks to digitalise and optimise its OTC derivatives processes
EU and US regulators agree on margin equivalence
As the regulators take a common approach, Mifid II-regulated venues look set to be exempt from Sef registration requirements
London Stock Exchange Group boosts LCH stake
LCH’s activity has ballooned over the past 12 months, with its ForexClear platform clearing more than a trillion dollars’ worth of non-deliverable forward trades in August
LCH SwapAgent completes first trades
Citi and Deutsche Bank executed the first trades, a Swiss franc-denominated interest rate swap and euro-denominated inflation swap
BoE warns of potential disruption to clearing business for EU firms
Fragmentation of market-based finance could result in greater costs and risk for European Union and UK companies
Michael Davie returns to LCH to lead rates business
Davie takes over from Daniel Maguire, who became chief operating officer in April
Surprise renminbi strengthening prompts unwinds
“A lot of long [US$] positions were unsustainable and had to be re-evaluated,” says FX structuring head
Regulators relent ahead of VM big bang
Firms with "significant exposures" must stick to March 1 deadline, however
FX contracts in OTC derivatives soar to record high
FX instruments, as a share of all over-the-counter derivatives, rise from 12% in 2013 to 16% this year
Underwood FX builds out expert offering
The firm brings in legal, futures and other OTC professionals as it expands into traded markets intelligence
Bats Hotspot prepares outright FX forwards launch
New product could get rolling in the autumn
FSB finds fault with derivatives trade reporting
Despite large volumes of trades being reported, some authorities have restricted access to data, which is often low quality; some jurisdictions are experimenting with new analysis
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
Extent of Sef-driven fragmentation revealed in Isda survey
Almost 80% of respondents indicate that Footnote 88, which required all platforms to register as Sefs by October 2, has resulted in fragmentation of liquidity in FX options and NDFs
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
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
Standardised OTC swaps spice up futurisation fight
March saw the launch of a template for a new standardised interest rate swap product – an attempt to protect swap market liquidity from the threat of futurisation. The first product based on the template could be launched within weeks, but even some…
Futures will not beat swaps on margin alone, say buy-side firms
Swap futures have a number of advantages, but OTC instruments will continue to be popular, leading buy-side firms say
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
Complexity and costs of clearing continue to cause concern
Mandatory clearing of OTC derivatives could lead buy-side firms to leave a greater portion of their risks unhedged, warn speakers at a buy-side conference in London