News
JP Morgan Chase markets CDO with equity puts in Asia
JP Morgan Chase has begun marketing synthetic collateralised debt obligations (CDOs) with embedded equity put options to a small number of investors in Asia-Pacific. This type of structure is aimed at sidestepping the sometimes-thorny issue of…
LSE launches covered warrants trading
The London Stock Exchange (LSE) launched its covered warrants market this morning, giving UK private investors direct access to equity hedging tools.
EnergyClear and Vmac to develop clearing function
Houston-based, industry-owned energy derivatives clearing house EnergyClear Corporation has entered into a letter of intent with New York-based credit risk assurance provider Virtual Markets Assurance Corporation (Vmac) to develop a program linking Vmac…
Market mulls forex options benchmark
Standard foreign exchange options benchmark prices could be the answer to inaccuracies in marking exposures to market, but whether the move is possible is a matter for debate, according to senior options market participants.
Danske plans systems upgrades for exotics and swaps
Denmark’s Danske Bank plans to upgrade its front-end derivatives trading technology by introducing a number of new systems modules developed by IT provider Summit Systems, an operating unit of UK software company Misys.
SunGard coup for FXConnect
State Street Corporation is due to announce this week that it has secured a coveted deal with the treasury software unit of Pennsylvania-based technology company SunGard.
Patsystems to take £500,000 hit
UK-based derivatives trading software vendor Patsystems will take a £500,000 hit in redundancy costs in its end-of-year results. It is also likely to trim staff further in spite of encouraging figures for the third quarter and ongoing cost-cutting…
Taiwan rule change should help local interest rate derivatives market
The Taiwanese authorities’ decision to allow short selling of government bonds in mid-October is opening the door to new derivatives products on the Taiwan dollar market.
SGX reveals launch date for Middle East crude oil futures
The Singapore Exchange (SGX) and IE Singapore plan to launch the SGX Middle East crude oil (Meco) futures contract on the exchange's electronic trading system on November 12.
Sydney Futures Exchange to launch interest rate swaps
The Sydney Futures Exchange (SFE) will launch interest rate swap futures trading in November, the exchange said.
HypoVereinsbank protection costs widen after poor Q3 results
Poor third-quarter results released by HypoVereinsbank on Wednesday prompted the cost of credit protection for the German banking group’s senior, five-year debt to widen 30 basis points to 140/165bp by trading mid-session today. HypoVereinsbank’s net…
Delay to Japanese bad-loan proposals stymies bank swaps trading
The decision by the Japanese government this week to delay the release of drastic proposals to tackle the country’s decade-long, non-performing loan problem, caused protection on Japanese bank debt to trade slightly wider, with bid-offer spreads…
Global defaults fall for first time in two years, says S&P
Global default rates fell in the third quarter for the first time in two years, signalling that the flood of corporate defaults that began in the late 1990s has peaked, according to ratings agency Standard & Poor’s.
Delayed Basel II securitisation paper expected shortly
BASEL – Global banking regulators hope to issue very shortly the delayed discussion paper on asset securitisation in the context of the complex Basel II capital accord that’s aimed at making the world’s banking system safer.
Super-senior risk buyer’s role seen as vital in managed synthetics
The future growth in managed synthetic collateralised debt obligation (CDO) deal-flow is dependent on the willingness of counterparties to sell super-senior risk protection to CDOs, said Jeff Huffman, a London-based executive director in Goldman Sachs’…
Three firms receive OTC derivatives trading licences in South Korea
Three local South Korean securities houses have received licences to trade over-the-counter (OTC) derivatives following regulatory changes that opened up the country's OTC market to securities firms in July.
Credit Lyonnais extends DerivaTech to Asia
French bank Credit Lyonnais has extended the use of US-based software house DerivaTech's foreign exchange options pricing system to its branches in Korea, Taiwan and India.
Weather risk market remains buoyant, claims Clemmons
The global weather risk market is still healthy, despite high profile departures from the market, speakers told delegates at Risk 's WeatherRisk conference in London today.
Delayed Basel II securitisation paper expected shortly
Global banking regulators hope to issue very shortly the delayed discussion paper on asset securitisation in the context of the complex Basel II capital accord that is aimed at making the world’s banking system safer.
BarCap lures Aguais from Algorithmics
Barclays Capital, the investment banking division of Barclays Bank, has lured Scott Aguais from enterprise risk management vendor Algorithmics, to work as its new head of credit risk methodology in London.
ABB protection no longer available on a client-only basis
Credit protection on the debt of ABB is no longer available even on a client-only basis, major dealers said today.
Lombard launches collateral management application
London-based risk management software company Lombard Risk Systems yesterday launched FirmRisk Collateral, a collateral management application developed for financial and non-financial institutions.
e-FX may affect liquidity and volatility, BIS says
Market participants fear the rise of electronic trading may adversely affect liquidity and volatility in the forex markets, according to the Bank for International Settlements (BIS).
Kofex and CME sign MOU
The Korea Futures Exchange (Kofex) and the Chicago Mercantile Exchange (CME) have signed a memorandum of understanding (MOU) to pursue joint business development initiatives in derivatives products.