TheTradeNews.com

ISDA casts doubt on SEF quote rules

Fri, 24 May 2013 15:52:58 GMT

The International Swaps and Derivatives Association has voiced disagreement with recent rules that dictate a minimum number of quotes market participants must seek when trading on new swap execution facilities.

CFTC gives SEFs green light

Fri, 17 May 2013 16:14:25 GMT

Swap execution facilities have been given the go-ahead after the US Commodity Futures Trading Commission passed final rules on OTC derivatives trading, including dropping the number of bids buyers must request to three.

Cleared US dollar IRSs increase ahead of buy-side deadline

Paloma Migone — Thu, 16 May 2013 13:34:52 GMT

The number of US dollar-denominated interest rate swaps being cleared has jumped by 10% since US rules kicked in two months ago, according to a new tool using data from the Depository Trust and Clearing Corporation.

Volumes drift ahead of OTC derivatives reform deadlines

Richard Henderson — Tue, 14 May 2013 8:35:22 GMT

Global OTC derivatives trading volumes have slipped as market participants adjust to impending regulation and the emergence of swap futures, new data has shown.

CFTC faces second lawsuit over ‘anti-competitive’ rules

Paloma Migone — Tue, 07 May 2013 13:50:22 GMT

Progress on derivatives rules under Dodd-Frank has been dragged down further with the US Commodity Futures Trading Commission facing a second lawsuit and accusations of being anti-competitive.

SEC plans ‘robust and workable’ roadmap for cross-border swaps

Thu, 02 May 2013 8:48:56 GMT

The US Securities and Exchange Commission yesterday unveiled its new framework for cross-border swaps, with chairman Mary Jo White claiming that its ‘substituted compliance’ approach would reduce the regulatory complexity faced by global market participants.

Derivatives tax proposal ‘would punish risk management’

Thu, 25 Apr 2013 14:38:11 GMT

A US budget proposal that would change how derivatives are taxed could, if agreed, increase portfolio risk and damage both the derivatives and underlying markets, investor bodies and analysts claim.

Bloomberg lawsuit will not stem swap futures

Richard Henderson — Tue, 23 Apr 2013 15:55:00 GMT

Bloomberg's legal action against the Commodity Futures Trading Commission this week will not constrain the growth of swap futures, experts have warned.

Buy-side swaps reporting thwarted by vendor reliance

Mon, 15 Apr 2013 17:20:37 GMT

Asset managers' reliance on advice from third-party vendors and clearing brokers as they prepare for new swaps reporting and trading regimes could lead to significant compliance delays, an expert has warned.

New swaps standard offers buy-side flexibility

Richard Henderson — Tue, 09 Apr 2013 15:41:59 GMT

A new industry-led reporting and communication standard for OTC derivatives will give buy-side firms greater scope to automate regulatory-mandated reporting, including splitting margin payments to central counterparties.

New rules may force buy-side to reduce hedging activity

Tue, 09 Apr 2013 15:25:50 GMT

The buy-side may reduce its risk hedging activities as a result of clearing requirements for OTC derivatives under the Dodd-Frank Act, which will capture asset managers for the first time in June, an expert has warned.

Citi includes segregated accounts to collateral offering

Tue, 09 Apr 2013 15:20:40 GMT

Global banking house Citi will expand its custody offering to include segregated collateral accounts as central counterparties prepare to offer such accounts in line with new regulations.

Credit Suisse adds single-leg options to derivatives platform

Tue, 02 Apr 2013 17:15:28 GMT

Credit Suisse this week announced the addition of single-leg tactics for US-listed equity, index and exchange-traded fund options to its derivatives trading system, which will improve the efficiency of directives execution for buy-side traders.

Market split on non-cleared swaps margin rules

Tue, 02 Apr 2013 17:13:49 GMT

Proposals on margin requirements for non-cleared OTC derivatives have been welcomed by UK buy-side trade body the Investment Management Association but continue to irk the International Swaps and Derivatives Association.

Nasdaq accelerates diversification play with eSpeed buy

Richard Henderson — Tue, 02 Apr 2013 17:08:07 GMT

Global markets operator Nasdaq OMX will acquire the eSpeed electronic trading platform for US treasury notes and bonds as the fixed income market undergoes wholesale regulatory-driven change.

Swap futures could offer greater hedging options

Tue, 26 Mar 2013 12:22:31 GMT

Swap futures may offer market participants greater hedging options, while divergent block trading rules could have a significant impact on liquidity, a report has stated.

NYSE Euronext joins mini options trend

Richard Henderson — Tue, 19 Mar 2013 10:55:43 GMT

US exchange operator NYSE Euronext has joined competing US venues in offering mini options contracts for the most popular underlying stocks on its NYSE Arca and NYSE Amex exchanges.

BATS offers mini options in top stocks

Richard Henderson — Fri, 15 Mar 2013 11:13:18 GMT

US market operator BATS Global Markets will launch mini options for five of the most actively traded securities on its options market, as it standardises processes for both mini and regular options contracts.

Buy-side looks to multi-leg options algos

Thu, 07 Mar 2013 18:19:06 GMT

Buy-side firms in the US are increasingly turning to multi-leg options orders and new algorithmic strategies for options as exchanges continue to expand complex order book functionality.

CFTC approves contentious CME reporting rule

Anish Puaar — Thu, 07 Mar 2013 17:00:11 GMT

The Commodity Futures Trading Commission has approved a rule in CME Group's rulebook that compels market participants to report the trades cleared through the US derivatives bourse to its data repository

Prospects bright for IRS futures volumes – Woodbine

Anish Puaar — Thu, 28 Feb 2013 12:13:38 GMT

Trading volumes in interest rate swap futures will grow as investors seek more cost-effective ways to hedge risks, but the new contract type is unlikely to overshadow the growth of cleared OTC derivatives.

Newedge gears up for swaps clearing

Anish Puaar — Thu, 28 Feb 2013 10:42:14 GMT

Newedge has cleared its first OTC US dollar interest rate swap contract through CME Clearing, as the multi-asset broker accelerates its preparation for the new swaps trading era.

HFT dominance threatens less-liquid US options

Anish Puaar — Tue, 26 Feb 2013 16:01:49 GMT

A shift in the competitive environment for options market making could lead to a drop in liquidity for lesser traded instruments, as technology continues to influence trading in the asset class.

Interdealer brokers expand platforms ahead of SEF rules

Richard Henderson — Tue, 19 Feb 2013 16:41:24 GMT

Interdealer brokers Tradition and ICAP have added US dollar interest rate swaps to their derivatives trading venues as both firms gear up to register as swap execution facilities under the Dodd-Frank Act.

Regulatory, competition pressures spell tough times for FCMs

Mon, 11 Feb 2013 14:30:47 GMT

Large banks that act as futures commission merchants in the US could struggle to maintain profitability as a swathe of new regulations threaten to reduce the profitability of derivatives trading.

Nasdaq OMX to offer new US treasury derivatives

Thu, 07 Feb 2013 11:24:27 GMT

Nasdaq OMX has partnered with custodian bank BNY Mellon to introduce new derivatives based on US treasury securities, which it claims will help investors hedge interest rates more efficiently.

Battle lines drawn at CFTC swap futures hearing

Anish Puaar — Fri, 01 Feb 2013 12:23:42 GMT

Market participants have raised concerns with the Commodity Trading Futures Commission that the potential growth of swap futures could create an uneven playing field between swap execution facilities and futures exchanges.

Buy-side predicts swaps market decline

Richard Henderson — Fri, 01 Feb 2013 12:17:36 GMT

A significant proportion of buy-side traders expect a reduction in the OTC derivatives volumes following the introduction of swaps rules, with many also expecting a substantial shift to equivalent futures, according to research from UBS.

Time running short for swaps rules preparation

Richard Henderson — Tue, 29 Jan 2013 13:57:52 GMT

Buy-side firms must prioritise the selection of clearing houses they want to use as part of preparation for new OTC derivatives legislation, or risk falling behind, according to new research.

Collateral burden set to ease for US CDS trades

Anish Puaar — Fri, 11 Jan 2013 15:52:17 GMT

Expected regulatory approval of portfolio margining for US credit default swaps will reduce the cost of clearing and could dictate the shape of the derivatives landscape in the future.

Futures and options trading grows with increasing electronification

Fri, 11 Jan 2013 14:25:12 GMT

Increasing confidence in the future and options market has prompted a growth in electronic trading, a new report has outlined.

Key US swaps reforms come into effect

Anish Puaar — Thu, 03 Jan 2013 11:40:30 GMT

Two of the main rules relating to the US' comprehensive OTC derivatives regulatory overhaul have come into force, with the Commodity Futures Trading Commission (CFTC) stating that 65 firms are now provisionally registered as swap dealers.

Futures merchants must adapt to survive, TABB

Richard Henderson — Thu, 06 Dec 2012 15:07:42 GMT

Futures commission merchants must provide new services and improved capital management to mitigate lower volumes and new rules, while 15% may quit the business, according to new research.

Industry welcomes Dodd-Frank FX exemption

Richard Henderson — Tue, 20 Nov 2012 14:28:55 GMT

The investment community has welcomed an exemption on foreign exchange forwards and swaps from clearing and exchange trading rules which will be applied to other derivatives products under impending Dodd-Frank Act rules.

CFTC swaps reporting could stop JP Morgan ‘whale’ scenario

Fri, 16 Nov 2012 11:29:49 GMT

New swaps reporting requirements released for public comment Wednesday by the Commodity Futures Trading Commission could stop large-scale harmful trading activity, according to one leading industry commentator.

ITG launches futures capabilities

Tue, 06 Nov 2012 13:28:52 GMT

Broker ITG will offer futures execution and routing as part of an expansion to meet a spike in futures trading.

BATS hits US equities record

Richard Henderson — Fri, 02 Nov 2012 15:12:14 GMT

BATS Global markets reached a record 13% market share of US equity trading volume in October.

Four-fold increase in CDX volumes ahead of Dodd-Frank rules

Richard Henderson — Tue, 30 Oct 2012 9:15:04 GMT

Market operator Tradeweb has registered a four-fold rise in credit default swap indices trading volume in a week, as market participants prepare for new OTC derivatives regulation.

Portfolio margining to provide dramatic savings in IRSs

Bruce Love — Mon, 29 Oct 2012 13:37:25 GMT

Once all clearable interest rate swaps are eligible for portfolio margining in the United States, the industry could see margin savings of US$618 billion, according to a new report.

Vega-Chi debuts US buy-side only fixed income market

Anish Puaar — Thu, 25 Oct 2012 10:36:42 GMT

Vega-Chi has reported the successful debut of its buy-side only trading platform for US high-yield and distressed fixed income products, with over 40 clients supporting the venue from launch.

ISDA backs new US swaps clearing standard

Richard Henderson — Thu, 25 Oct 2012 10:35:51 GMT

The International Swaps and Derivatives Association has thrown its support behind an industry standard on over-the-counter derivatives reporting and will provide program management, governance and industry oversight for the service.

ICE and Markit join forces to create new CDS futures

Richard Henderson — Wed, 17 Oct 2012 11:55:13 GMT

The IntercontinentalExchange will offer exchange-traded futures and options contracts based on corporate credit default swaps indices, helping trading houses avoid new regulation on over-the-counter derivatives trading.

New swaps rules lead to buy-side risk management changes

Anish Puaar — Thu, 11 Oct 2012 11:35:47 GMT

Many buy-side firms are not actively managing or hedging credit valuation adjustments, according to the latest annual survey by the Professional Risk Managers’ Association.

Goldman Sachs settles options order claims

Richard Henderson — Tue, 09 Oct 2012 15:40:38 GMT

Goldman Sachs has agreed to pay over US$6 million in settlements to US options venues after its order entry system unfairly prioritised market making activity as customer flow.

Derivatives markets volumes unmoved by looming reforms

Anish Puaar — Wed, 12 Sep 2012 14:41:38 GMT

The impending impact of widespread reforms to the swaps market have not been reflected in the proportion of trading executed on listed markets versus OTC derivatives, according to new research.

Citi's new algos address fragmented US options market

Richard Henderson — Mon, 10 Sep 2012 10:10:51 GMT

A new range of smart algorithms from Citi will let the buy-side use varying levels of aggression to compete in the increasingly fragmented US options market.

Newedge names AIS co-heads and extends CME clearing

Bruce Love — Thu, 06 Sep 2012 12:24:41 GMT

A series of promotions have been aimed at strengthening broker Newedge’s clearing services, while in Chicago the company has extended its clearing services to include OTC interest rate swaps.

Sapient sets out new OTC derivatives standard

Bruce Love — Tue, 14 Aug 2012 15:31:40 GMT

Trading advisory, analytics and technology provider Sapient Global Markets has developed a new standard for cleared OTC derivatives reporting for asset managers, futures commission merchants and custodians.

ISDA adjusts swaps agreement for Dodd-Frank compliance

Anish Puaar — Tue, 14 Aug 2012 13:12:53 GMT

A new protocol from the International Swaps and Derivatives Association (ISDA) will allow market participants to bring agreements that underpin over-the-counter derivatives contracts in line with the US Dodd-Frank Act.

NYSE Liffe US reports volumes for potential LIBOR substitute

Anish Puaar — Tue, 24 Jul 2012 12:02:26 GMT

NYSE Liffe US, the futures exchanges operated by NYSE Euronext, last week traded US$100 billion worth of futures based on a new index it claims could be a strong alternative for LIBOR.