News
Banks resume multi-million dollar bonuses
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House committee approves new powers to let regulators ban incentive pay
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US Wrap: Market banks on S&P 500 growth
The US market has turned back to S&P 500-linked products, with accelerated growth structures linked to the index making up half of new issuance yesterday. Principal protected and autocallable structures were also launched on the index.
Primus restructures $1.2 billion of CDSs on monolines
New York-based credit derivatives product company (CDPC) Primus Financial Products has restructured $1.2 billion of credit derivatives protection the firm had written referencing a monoline insurer.
Bank of England to buy up commercial paper
The Bank of England yesterday announced its intention to buy asset-backed commercial paper from struggling UK companies in a continuing effort to increase the flow of credit, starting on Monday August 3.
E.ON Energy Trading joins CEGH
EON Energy Trading has joined the Central European Gas Hub (CEGH) at Baumgarten. The move is part the company's plans to expand its gas trading activities in Central and Eastern Europe in an effort to improve market access and develop a more integrated,…
US legislators outline derivatives proposals
Two committee chairmen from the US House of Representatives have published a concept paper on regulation of over-the-counter (OTC) derivatives designed to guide any future legislation.
ICE Futures Europe data added to COT reports
The Commodity Futures Trading Commission (CFTC) is to include positions of traders in West Texas Intermediate crude oil contracts on ICE Futures Europe in future Commitments of Traders (COT) reports.
BHP Billiton offers 30% of iron ore contracts for sale
Global mining company BHP Billion has announced that 30% of its total iron ore volumes will be sold on a mix of quarterly negotiated pricing, market clearing price (spot market) and index-based pricing. The move has boosted confidence in the development…
UK scraps carbon VAT to tackle fraud
The UK government has moved to tackle VAT fraud on carbon credits by removing VAT from emission allowances.
Financial CDS spreads steady
Market sentiment towards financials has steadied in the past week as the flow of positive second-quarter results from major financials in Europe and the US continued.
CDS clearing in Europe begins
Dealers have met the July 31 deadline for clearing credit default swaps (CDS) on European reference entities and indexes that they set back in February.
US Wrap: Citi offers up two reverse convertible trades
Citi has joined in the slow but steady trickle of reverse convertibles coming into the US market. The bank has issued two notes, one offering exposure to the stock of mining company Vale, and the other to General Electric (GE). The structures are more…
House committee chairmen produce roadmap to OTC reform
Collin Peterson and Barney Frank, the chairmen of the US House Committee on Agriculture and the House Financial Services Committee, respectively, have agreed a set of principles for imminent reforms to over-the-counter derivatives regulation.
Credit demand and supply still falling in Europe
European banks are still tightening their lending conditions, and demand for credit continues to fall, according to the latest lending survey by the European Central Bank.
European banks report modest Q2, despite increased provisioning
Top Spanish, German and Swiss banks have reported modest gains in the second quarter, although their profits have been constrained by an increase in non-performing loans and loan loss provisioning.
CME launches cleared OTC agricultural options
CME Group today announced the launch of 10 cleared over-the-counter (OTC) options on physical agricultural commodities, beginning August 24.
Commission suggests 'possible further changes' to CRD
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CDS: Spreads move in both directions across the regions
Credit default swap 5-year mid-levels for structured products issuers (Wednesday July 29)
US Wrap: ABN Amro continues slow trickle of reverse convertibles
ABN Amro is continuing its slow and steady release of reverse convertible notes into the US market, launching a structure linked to General Electric stock. It pays an annualised rate of 9%, with a barrier of 70%. If the stock falls below this barrier and…
JGBi breakevens rebound as investor liquidation subsides
The Japanese inflation-linked bond (JGBi) market has rebounded from its lows of last year as fewer investors are liquidating their positions, while some domestic players are starting to buy the heavily discounted bonds.
Banks step forward at second CFTC hearing
Investment bank structures came under fire today at a Commodity Futures Trading Commission (CFTC) hearing called to examine position limits and hedge exemptions in the energy sector.
Financial crisis hits European Energy Exchange
Trading volumes at the European Energy Exchange (EEX) have slumped in the first half of 2009 after years of continuous growth. An EEX report highlights a particular decline in power derivatives volumes traded by financial institutions, despite a boost in…