Foreign exchange
Deposits turn to rates and inflation in US
Rates and inflation-linked certificates of deposit are being launched by US providers as sales of the government-backed investments continue to be robust. Wells Fargo, HSBC and JP Morgan are all offering structures which expose investors to changes in…
Swiss trade body unveils product risk classifications
The Swiss Structured Products Association is to launch a new online risk classification system for all listed structured products in Switzerland from the beginning of July. Products will now receive an SSPA risk rating based on the value at risk of the…
Deloitte survey finds risk management weaknesses
Despite the credit crisis, financial institutions are still showing risk management weaknesses in areas such as stress testing and model validation, according to an annual risk management survey conducted by Deloitte.
Banks repay $68bn in Tarp funds to US Treasury
Ten of the largest US financial institutions that have received public funds under the Troubled Assets Relief Program (Tarp) scheme are to pay back $68 billion after they were approved to reimburse the funds to the federal government yesterday.
Industry opposes mandatory clearing
Compulsory central clearing is not a one-stop solution to the problems of the derivatives markets, and could end up crippling the industry, warned speakers at an industry event in London on Tuesday.
Bluenext suspends trading following VAT exemption for carbon
Trading will resume on environmental exchange Bluenext on Wednesday June 10 at 8.00AM after two days of closure following the French Budget Ministry's announcement that carbon permits will be exempt from VAT.
Industry panel: avoid one-size-fits-all approach to OTC derivatives
A panel of industry experts on June 9 urged the US House Financial Services Subcommittee to steer clear of broad, one-size-fits-all regulation for over-the-counter derivatives.
SuperDerivatives partners with Athena
Derivatives technology provider SuperDerivatives has partnered with Canadian natural gas company Athena Energy Marketing (AEM) in an effort to increase market transparency.
Saxo Bank lowers barriers for entry with launch of commodity CFDs
Copenhagen-based investment bank Saxo Bank has launched its first contracts for difference (CFDs) for investors in commodities, which the bank says will lower barriers to trading energy, metals, soft commodities and grains.
Treasury silent on Tarp as banks submit $75bn SCAP capital plans
The 10 financial institutions identified as requiring additional capital under the US Treasury's Supervisory Capital Assessment Program (SCAP) economic stress tests have submitted plans describing how they intend to raise almost $75 billion in funds to…
Risk Europe : Walter sets out programme for Basel II changes
In his keynote address at the Risk Europe conference in Frankfurt on June 4, Stefan Walter, secretary-general of the Basel Committee on Banking Supervision, highlighted strengthening capital requirements and the need to look at risk at a systemic level…
Risk Europe : Regulators must address structural liquidity mismatches
Supervisors should develop standards that address structural liquidity mismatches between bank assets and liabilities, according to Jim Embersit, the deputy associate director in the US Federal Reserve Board's division of banking supervision and…
Risk Europe : ECB board member warns central banks against over-reaching on risk
As the European Central Bank announced a new programme to purchase up to €60 billion of euro-denominated covered bonds, ECB board member Jose Gonzalez-Paramo said central banks should not be taking on credit risk, in a keynote address at the Risk Europe…
NY Fed to push ahead with Talf for toxic MBS loans
The Federal Reserve Bank of New York is to push ahead with plans to open up the Term Asset-backed Securities Loan Facility (Talf) to purchasers of toxic commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS).
CFTC targets dealers, leverage and counterparty risk
Gary Gensler, the new chairman of the US Commodity Futures Trading Commission (CFTC), outlined tighter restrictions on derivatives dealers and traders in testimony to the US Senate yesterday.
Convergence on securitisation is vital, ESF told
A prominent securitisation lawyer has criticised the lack of convergence between regulatory bodies with regard to securitisation regulation.
BIS: decline slowing on derivatives exchanges
Volumes continued to fall on international derivatives exchanges this year, but there are signs of recovery, according to the latest figures from the Bank for International Settlements (BIS), released today.
Companies increase commodities hedging
Companies around the world are now hedging 55% of their commodity exposure as a result of increased volatility and the global financial crisis, according to a survey by Connecticut-based research consultancy Greenwich Associates.
OTC carbon volumes increase by over 80%
The London Energy Brokers' Association (LEBA) has announced that over-the-counter (OTC) carbon volumes have grown by 82% during the first five months of 2009, compared to the same period last year.
Toxic loan PPIP purchases postponed, feared dead
The purchase of distressed whole loans using taxpayer funds under the US Treasury's Public-Private Investment Program (PPIP) has been postponed, the Federal Deposit Insurance Corporation (FDIC) has announced, raising speculation that the scheme might be…
Time to celebrate
Discover the leading lights in the global energy trading and risk management industry as we reveal the winners of the 2009 Energy Risk Awards
Russia and the EU Gas Market
Russia is the world's largest exporter of natural gas and holds the largest reserves. With Europe increasingly dependent on Russia for future gas supplies, Eric Fishhaut of GlobaView looks at Russia's influence over gas supply and demand
Spark-spread option valuation
In this next article of the Masterclass series, Lacima Group focus on power trading and detail how industry practitioners typically value the flexibility of generation assets as real options while taking operating constraints into account
OMG commits to new clearing and reporting targets
The Operations Management Group (OMG) on June 2 outlined its latest targets to improve the operational infrastructure of the over-the-counter derivatives industry.