Icap: Sefs could lead to ‘sub-optimal hedging’
Mandating non-deliverable forwards (NDFs) to be traded on swap execution facilities (Sefs) will result in a less liquid NDF market and make it harder for end-users to hedge, says Dean Berry, chief executive of global e-commerce at interdealer broker Icap.
Under the Dodd-Frank Act, derivatives such as interest rate swaps and NDFs will be required to trade on an electronic platform, or a Sef, and cleared at a clearing house. NDFs are prevalent across Asia – home to several non-convertible
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Currency derivatives
In a bit of a fix: Refinitiv seeks ideas to improve WM/R
Operator launches consultation following criticism of 4pm fixing rate
Equities & the Fed: A Dependent or Codependent Relationship?
From early 2014 through 2018, expectations for rate hikes by the Federal Reserve (Fed) moved almost in lockstep with U.S. equity markets.
FX Options Skews: Economics and Implications
Nearly all options markets exhibit some kind of natural skewness.
Surprise RMB strengthening prompts unwinds
“A lot of long [US$] positions were unsustainable and had to be re-evaluated,” says forex structuring head
Documentation concerns slow CNY forex derivatives growth
Foreign fund managers need clarity before market can take off, say banks
