Latest
Microsoft outage disrupts structured notes trading
Document-heavy OTC trades upended as term sheets and confirmations languished in outboxes
Santander’s TLAC ratio drops to all time low
Leverage-based headroom narrows to 35bp in Q3 as eligible resources decline by €10bn
Shared deposit networks eye ‘$2 trillion’ extra capacity
Following post-SVB boom, loosening restrictions expected to lead to gradual rise
One-factor rates models sit behind most XVA calculations
Risk Benchmarking: Dealers coalesce around calibration depth, but runtimes and lookbacks vary sharply
Dealers call on China regulator to approve Isda Simm
Isda is asking NFRA to approve SIMM as “an industry model”
Tech firms continue surge in FX hedging
Apple and Micron lift FX notionals by more than 60% in Q3, while Alphabet and others deploy debt for net investment hedges
Could a prediction market bet get you fired by your bank?
At least half of US systemic banks limit personal prediction trades, but mention markets still a concern
Hedge fund side-pocket assets jump 25% to record $146bn
Largest quarterly increase on record comes amid growing concerns over liquidity in private markets
What Goldman’s commodities head learned from Iran war
Talking Heads 2026: As prices jumped, market hedges faltered and physical delivery became all important
Refined slippage: variance reduction using counterfactual returns
A new metric is introduced that benchmarks fill prices against counterfactual prices, rather than the arrival price
Dealers still split on XVA desks’ funding remit
Risk Benchmarking: Global dealers use XVA desks to manage swaps funding needs, but most treasuries retain some control
How enterprise risk rose to the top of the bank
Previously a support function, ERM is naturally positioned to identify strategic risks for the board
Can prediction markets pass the institutional sniff test?
Regulated firms need credible event determination methodologies and cross-product margining to enable use, say experts
Wells Fargo’s problem commercial loans shift towards C&I
Share of commercial nonaccruals tied to C&I more than doubles since late 2023
Buy-side options books shaken up in Q2 stock rally
Calamos, Janus Henderson, NY Life and Oceanview among buy-side firms reporting big index and single-stock shifts in latest filings
UK banks face divergent Basel 3.1 capital outcomes
Barclays’ RWA increase could erode Pillar 2A relief, while Lloyds expects a double benefit
People: Lloyds lands new CRO, NatWest reshuffles top deck, and more
Latest job changes across the industry
Future of settlement is taking shape – so are some big questions
Cash or coins? How to tackle loss of netting? What about CBDCs? Market has a lot to decide in settlement revamp
Dispute emerges over ‘ambiguity’ of perp markets
Kalshi execs hit back at report’s findings of regulatory fogginess
EBA brainstorming ways to make capital rules competitive
Watchdog aims to provide advice on future revisions before year-end
KeyCorp locks in future rates with $6.8bn swaps additions
Forward hedges rise to $10bn as lender prepares for rate uncertainty
Dispersion trades weather AI selloff, for now
Gamma-weighted versions of the popular trade gained almost 7% as single-stock volatility surged
Bank Mandiri’s SFT exposures more than double in Q2
Surge in repo and derivative exposures adds pressure on leverage ratio
Most dealers run central XVA desks, but remits vary
Risk Benchmarking: Many banks struggle to track XVA costs and share of derivatives compute
EU banks in India cut contingency costs after clearing deal
Esma MoU with two Indian regulators lifts threat to direct clearing for BNP, SocGen and Deutsche
BofA names co-heads for new credit macro trading unit
Reshuffle comes after macro and systematic trading head Derek Hafer jumped to RBC
‘Think like a farmer’: how Transtrend rode out the Hormuz shock
Talking Heads 2026: Transtrend’s Toni Budimir on shifting correlations, staying diversified – and knowing when to stop calculating
Japan Post unrealised losses climb to ¥5.7trn in Q3
Markdowns on HTM JGBs equal to 17% of book value
Smile dynamics and rough volatility
The joint spot-smile dynamics is analysed through the skew stickiness ratio lens
BRL options traders count cost of Lula shock
One-way Bolsonaro bets forced dealers into tough hedging choices as USD/BRL gapped 13% on Lula’s victory
Beyond settlement: LSEG’s Dish eyes funding boom
Stablecoin-sceptic, blockchain-agnostic service touts new world of intraday repo and foreign exchange
EU carve-out halves BNP Paribas’ cross-border G-Sib activity
Basel consultation could cement preferential treatment for European banks in G-Sib framework
Big banks look to XVA desks to crush counterparty exposures
Risk Benchmarking: Two-thirds of global dealers run routine optimisation, compared with just 13% of smaller players
FRTB revamp won’t restore models to past glory, risk managers say
US-inspired reform only expected to lead to small boost in adoption, with limited desks on IMA
French yield surge sparks scramble to salvage range accruals
Dealers look to shift barriers and reference indexes after Tec10 notes breach upper barriers
Chinese G-Sibs add 500bn yuan to TLAC headroom
Eligible resources outpace RWA growth ahead of tighter 2028 requirements
Regulators must think bigger to tackle tech risks, says Hong Kong SFC
Leung warns AI adoption and recent cyber scares show new threats require global co-operation
Kalshi preps for ‘imminent’ launch of single-stock perps
CFTC expected to issue no-action letter within days for contracts on 56 individual stocks
Time to let some air out of the banking system?
Watchdogs worry about lowering standards, but policy-makers eye growth – they face a difficult dilemma
US regionals take $18bn AOCI hit in Q3
Unrealised losses deepen as AOCI reaches 15% of CET1 capital
Rewriting the output floor: how EU reform options would split the banks
Making transitional relief permanent would offer the biggest cut by 2033, while market-risk changes would create winners and losers
Dealers price ColVA, but few agree on scope
Risk Benchmarking: Two-thirds of dealers price in collateral valuation adjustments, but only half recognise it in accounting
Hang Seng LCR slumps to three-year low in Q2
LCR falls 58 percentage points as net cash outflows rise and HQLA declines
Credit jitters drive CDS volumes to new highs in Q2
US retail funds increase sold protection as credit default swap index notional hits $185bn
Europe expects FRTB to bite on XVA hedges
Risk Benchmarking: One-third of European dealers fear new market risk rules will have major effect on hedges
Competitiveness mandate for Esma faces uphill battle
European Parliament offers last chance to force Esma to take more nuanced approach
Non-bank dealers urge rethink on FICC default fund reshuffle
Separating margin will cut bank capital, but non-banks warn they face disproportionate risk-sharing
Ice flow weathers geopolitics and supply storms
Talking Heads 2026: Network size and liquidity see exchange group through volatile times and novel products
UAE, Qatari banks hit record risk density in Q2
Leverage exposure declines lift ratios as US and Chinese banks move lower
Banks peg range accrual coupons to CDS spreads
Morgan Stanley and BNP Paribas tie note coupon barriers to French sovereign and iTraxx Europe CDS spreads
