Over-the-counter (OTC) derivatives
Brokerage expands renewable fuels capabilities
Evolution Markets expansion targeted to respond to growing demand for alternative energy sources
NY Fed discourages use of bespoke derivatives
Post-trade reporting and collateral seen as way to push OTC derivatives towards central clearing
LCH.Clearnet re-values $218 trillion swap portfolio using OIS
Changes in valuation were “relatively small”, says clearing house
BIS position on OTC clearing eligibility at odds with EC
BIS top economist suggests all OTC derivatives could be standardised and sent to CCPs, but EC favours a more measured approach to determining clearing eligibility.
Corporates should be forced onto central counterparties – BIS
Central counterparties are wrongly perceived as being more expensive than OTC transactions, says a leading economist.
Special regulation report from Houston
With the US set to unveil the largest set of financial regulation reforms of the past 30 years, Lianna Brinded reports from Houston, Texas, on how these changes will effect the energy and commodities industry.
FOA: Details of new infrastructure derivatives rules expected shortly
European Union regulators to clarify controversial new derivatives and central clearing rules in a new regulation rather than previously intended directive, avoiding lengthy and politically sensitive procedure
Gensler calls for end to financials’ information advantage
CFTC chairman supports trading requirements in both versions of the financial reform bill that would benefit derivatives users rather than Wall Street banks, but calls for tighter exemptions to prevent systemic risk
Bankers hope for derivatives reprieve under US Dodd Bill
Banks lobby to avoid spinning off swaps desks under planned regulatory reform
Lynda Clemmons: weather derivatives will benefit from regulation changes
The former Enron derivatives pioneer believes forcing trades on exchanges will benefit niche players and smaller companies
Power companies to be hit by US financial reforms: expert
Senate financial reform bill could leave power companies facing major collateral problems
Return to variance?
Banks and investors were hammered on short single-stock variance positions during the crisis, causing many dealers to pull back from the variance swap market altogether. Instead, some have been pushing volatility swaps as an alternative, but not everyone…
China readies for launch of onshore CDS
Financial risk management tools seen as essential for Chinese bank development
Bank for International Settlements announces modest increase in OTC derivatives
Bank for International Settlements releases H2 2009 over-the-counter derivatives data that shows a small increase in total notional amounts outstanding
Pass the microphone: Nodal’s Cusenza to LCH.Clearnet’s Grensted
In this month’s Pass the Microphone, Paul Cusenza of Nodal Exchange puts his questions to Simon Grensted, Managing Director, Business Development, at LCH.Clearnet
New approaches to energy credit risk management
The aftermath of the financial crisis led to some innovative approaches to tackling energy credit risk. Pauline McCallion looks at developments and asks whether proposed US and European regulation will help or hinder innovation in this space
OTC shake-up likely as regulators mull centralised clearing
US legislators are pressing for reforms that will lead to a big shake-up in how over-the-counter derivatives are bought and sold. The question is how this will affect the structured notes market. John Ferry reports
OTC reform could strengthen support for energy position limits
The debate over derivatives regulation could provide momentum for the Commodity Futures Trading Commission (CFTC) to impose position limits on energy trading proposed in January.
Isda AGM: Rate of decrease in CDS notional falls
The rate of decrease in notional volumes of credit default swaps (CDSs) has slowed, according to the International Swaps and Derivatives Association’s year-end 2009 market survey, which was unveiled at its annual general meeting in San Francisco on April…
Buy-side CDS clearing 'not really happening'
Despite regulatory calls for buy-side clearing of credit derivatives, few client trades are being cleared.
EU derivatives experts suggest threshold system for corporates
Legislators at the European Commission will today move a step closer to determining whether non-financial users of over-the-counter derivatives should be forced to clear trades through central counterparties (CCPs) – a possibility corporates have…
Clearing exemption too close to call
Exempting commercial hedgers from mandatory clearing could create a loophole for the institutional investors often blamed for driving up commodity prices, according to the chief lawyer for the Commodity Futures Trading Commission (CFTC).
Future options
Tomorrow’s derivatives market looks likely to shift away from exotic products to focus more heavily on centrally cleared vanilla trades. Dealers hope to see a big jump in volumes, which will offset a smaller decline in margins. They also have an eye on…