OTC derivatives
LCH.Clearnet eyes November launch for NDF clearing
London-based CCP is set to launch clearing for NDFs in six currencies in mid-November, having shelved plans for options clearing while banks discuss settlement-related issues with regulators
Isda to review close-out value definitions
Absence of a standard approach is stifling attempts to value termination clauses, dealers complain
Taking stock of 2011: the buy side
Central bank intervention, volatile markets and forthcoming regulation – hedgers and investors in the FX market continue to face some real challenges. Chiara Albanese and Miriam Siers hear their views
SwapClear may assist OIS development
London-based clearing house might consider helping to build OIS markets in minor currencies, as it continues to move its interest rate swap portfolio to OIS discounting
New standard CSA could be rolled out in Q2 2012
An implementation plan for the new standard CSA is set to be reviewed by the Isda board in September, with a first-phase rollout expected as early as the second quarter of 2012
FX Week USA: Regulation both good and bad for the end-investor
Panellists agree mandated use of CCPs and exchanges could attract investors but will also raise costs
FX Invest: EIB signs Citi for collateral management
Citi gains key client for third-party collateral management service
FX Invest: Overlay Asset Management sticks with emerging markets
Overlay Asset Management’s Helie D’Hautefort talks to FX Invest about his firm's emerging markets strategies
Australian regulators suggest clearing exemption for FX
Reserve Bank of Australia discussion paper commits to harmonising rules with US and Europe
JSE to launch exotic can-do currency options
Move follows the successful launch of any-day expiry options in February
US Fed’s Tarullo stresses importance of robust CCPs
Well-managed central counterparties (CCPs) are key to handling counterparty credit risk, according to Daniel Tarullo, a governor at the Federal Reserve Board in Washington, DC.
Securities regulators at odds over OTC shift to trading platforms
Iosco members fail to agree on whether organised trading platforms for derivatives should source liquidity from multiple institutions.
Proof of exposure required before Indian companies can trade FX derivatives
New regulations in India will require companies to prove they have an exposure that needs to be hedged.
Asia to follow US on CCPs amid fears about hedging costs for exporters
Banks in Asia say there is no easy formula to decide whether moving over-the-counter foreign exchange instruments onto central counterparty (CCP) clearing would represent a lower-cost solution for their corporate clients, or whether they are better off…
Goldman Sachs appoints Lubke as chief regulatory reform officer
Theo Lubke calls time on 15-year stint with New York Fed to join Goldman Sachs.
Global FX Division establishes FXPB
The Global FX Division (GFXD) of AFME/SIFMA/ASIFMA announced the formation of a working group to focus specifically on the challenges and issues surrounding global FX prime brokerage (FXPB) and to implement over-the-counter FX clearing for clients.
First offshore renminbi swaption accomplished in Hong Kong
The first offshore renminbi OTC swap option was carried out this week between BNP Paribas and HSBC in Hong Kong, brokered by Icap.
BIS: FX derivatives growth rate slows
The over-the-counter FX derivatives market has seen a slowdown in growth rate following the financial crisis, as revealed in the Bank for International Settlements’ (BIS) triennial foreign exchange survey and its semi-annual OTC derivatives statistics.
Clearing saga threatens structured products
Citi has usurped Barclays Capital as best bank for structured products, a category that could be in the spotlight as regulations are clarified.
Dealer concern over proposed change to client margin segregation
Ice Trust estimates it might have to increase initial margin by 63% to cover risk.
EC likely to follow a US clearing exemption for FX swaps and forwards
The European Commission (EC) is likely to exempt foreign exchange swaps and forwards from a mandatory clearing requirement if the US decides to do so, according to Patrick Pearson, head of the financial markets infrastructure unit at the EC.
Buy-side targets capital efficiency, says UBS
Findings of UBS analysts stoke fears of race to the bottom among over-the-counter derivatives clearing firms