Infrastructure
From VAR to stress testing
Implementation of enterprise-wide VAR models in the 1990s was an important risk management advance, but it's time to rethink some fundamental aspects of how they were designed, argues David Rowe
A feast of futures
Associated British Foods is significantly exposed to commodity price fluctuations. Anna Gordon-Walker asks the company's finance team how it manages these diverse risks
Strength in numbers
Asia Risk conference
Algo trading to double, says Eurex
"The rise in activity of algorithmic traders is impressive, and it’s changing the nature of electronic trading,” said Andreas Preuss, chief executive of Eurex, a Frankfurt-based futures and options exchange that is jointly operated by Deutsche Börse and…
Dura auction breaks new ground
The bankruptcy of yet another US auto parts manufacturer, Dura Operating Corp, has led to another first for the settlement of credit derivatives trades.
Clearing houses may face greater competition
David Hardy, former chief executive of London-based clearing house LCH.Clearnet, warned that clearing houses may face greater competition if they don’t lower fees and provide more services. Speaking to RiskNews at the Futures and Options Expo in Chicago,…
Merrill Lynch debuts credit-linked note for Singapore
Merrill Lynch has launched the Jubilee Link Gain Notes for Singapore's retail investment market, allowing investors to participate in the credit markets in a principal protected and transparent manner. Jubilee Link Gain Notes have a high potential return…
Isda praises letter to Geithner on equity derivatives
The International Swaps and Derivatives Assocation (Isda) has said it “applauds and supports” a letter from 17 investment banks to Timothy Geithner, president of the Federal Reserve Bank of New York, which commits them to improving the efficiency of the…
Confirmation keeps OTC trading costs high, survey finds
The growth of the exotic over-the-counter market and the increase in confirmation requirements mean that trading costs have stayed high, according to a survey conducted by the London-based market analysts Z/Yen.
SwapsWire launches equity derivatives give-up service
London-based electronic confirmation service SwapsWire today launched its PBWire service, which supports give-ups on equity derivatives trades. PBWire allows buy-side clients, executing brokers and prime brokers to communicate give-up details in real…
Nymex in record IPO
The New York Mercantile Exchange (Nymex) has enjoyed a record-breaking stock market debut for its initial public offering.
Boat Banks to name vendor
LONDON—"Project Boat"—a consortium of nine banks that is creating an off-exchange trade reporting facility—is close to naming the vendor that will provide the underlying technology for the planned OTC trade data platform, according to sources familiar…
Credit derivatives still leading OTC growth, says BIS
Credit derivatives continued to be the fastest-growing sector of the over-the-counter market this year, despite rising numbers of early terminations.
Progressive, Centrica team up in clean coal project
Progressive Energy, a clean coal project developer, is to team up with UK-headquartered utility Centrica to develop an advanced clean coal project in the UK.