Infrastructure
Ice Clear Europe launches CDS clearing
Ice Clear Europe, the facility set up by Atlanta-based central counterparty (CCP) IntercontinentalExchange (Ice) for the clearing of European credit default swaps (CDS), has obtained regulatory approval and started clearing operations.
Lack of liquidity means a comeback for vol swaps
Dynamic replication of the payoff of volatility swaps on single stocks in illiquid markets is cheaper and easier than replicating variance swaps payoffs, dealers say.
Eurex CDS clearing solution to start on July 30
Eurex will begin clearing European index and single-name credit default swaps (CDS) as of July 30, the exchange said today.
CFTC to regulate ICE natural gas contract as SPDC
The Commodity Futures Trading Commission (CFTC) has imposed new regulatory and reporting requirements on a natural gas contract traded on the IntercontinentalExchange.
Q2 profits a false dawn for banks, Moody's says
Rising funding costs, continuing writedowns and the withdrawal of government support could push the global banking industry back into crisis, analysts warned this week.
Trading and one-off gains lift bank profits
Trading activities and one-off gains helped US banks record positive results during the week ending July 17, despite a continuing deterioration in traditional lending businesses, analysts said.
Race against the clock for European CDS CCPs
With just two weeks remaining until the European Commission’s deadline for central counterparties (CCPs) to begin clearing credit default swaps (CDSs), two of the competing platforms are still waiting for regulatory approval.
Quant Congress: Default rate data "underestimates structured credit risks"
Rating agencies' method for dating default event statistics has led to the systematic mispricing of risk in structured credit models, according to Robert Jarrow, professor of finance and economics at Cornell University.
TSE targets Japanese banks for CCP
The Tokyo Stock Exchange (TSE) is courting domestic financial institutions to become clearing members of its proposed central counterparty (CCP), which it is developing alongside its 86.3%-owned clearing arm, Japan Securities Clearing Corp (JSCC).
TriOptima sees surge in interest rate swap tear-ups
Stockholm-based technology company TriOptima has eliminated $13.9 trillion in notional outstanding from the interest rate swaps market in the first half of 2009, more than the $13.6 trillion total eliminated in 2008.
Central clearing will need new laws, Isda report finds
New laws will be needed in the US and Europe to support the introduction of central clearing of credit default swap (CDS) trades, according to a study published yesterday by the International Swaps and Derivatives Association.
High correlations spur interest in CCDS
Interest in using contingent credit default swaps (CCDS) as a speculative tool is being fuelled by high levels of cross-asset class correlations, according to some market participants.
TriOptima tear-ups cut CDS notional by $9 trillion
Swedish technology company TriOptima eliminated $9 trillion in notional outstanding from the credit default swap (CDS) market in the first half of 2009, the firm announced on July 9.
Carbon traders reject EDF Energy’s price floor calls
Carbon market participants have criticised calls by EDF Energy chief executive Vincent de Rivaz for a carbon price floor.
UPDATED: CFTC plans speculation clampdown
The Commodity Futures Trading Commission (CFTC) will hold public hearings in July and August to discuss the need for federal position limits to be imposed on energy futures traders.
NYSE Liffe’s CDS clearing platform in doubt
The central clearing service for credit default swaps (CDS) offered by London-based derivatives exchange NYSE Liffe is “under review”, an official at the firm told Risk .
“Slow and Painful” recovery for oil industry says Moodys
Ratings agency Moody's expects economic recovery within the global oil industry in 2010 to be 'slow and painful', according to its Industry Outlook for the Global Integrated Oil sector published last week.
EC looks to move standardised OTC derivatives onto exchanges
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Charting 15 years of prices
David Linton looks back at the long-term trends for oil, gas & power and where prices might go next