News
Canadian clearing house CDCC receives first rating from S&P
The Canadian Derivatives Clearing Corporation (CDCC), a unit of the Bourse de Montreal, has received an ‘AA’ rating from credit rating agency Standard & Poor’s (S&P). The rating could help CDCC expand its services to clear over-the-counter derivatives…
Cost of credit protection for IntesaBci widens due to weak Q3 results
The cost of senior five-year credit protection for IntesaBci widened 12 basis points to 87bp-mid, with its subordinated debt protection widening 40bp to 190bp-mid, after it reported weaker-than-expected results yesterday.
Isda presses Congress for passage of netting provisions
The International Swaps and Derivatives Association, the trade association for the financial risk management industry, has teamed with other key trade bodies in pressing the United States Congress to secure favourable passage of legislation on financial…
US and European credit derivatives markets remain muted
Default protection costs continue to tighten in both the US and the European credit default swap market in line with the cash market, traders said today, adding that volumes continue to remain relatively muted, particularly in the European markets.
Basel II op risk charge will help tackle concerns, says McDonough
NEW YORK - Banking supervisors believe that a separate capital charge for operational risk under the Basel II capital rules will bolster efforts to find better ways of addressing concern about the operational hazards faced by banks, the world's chief…
Hungarian utility selects KWI for trading and risk management
MVM, one of Hungary's largest electricity wholesalers, has signed up to use KW3000, the energy trading and risk management system developed by London-based energy risk management software company KWI.
Isda reports 75% increase in collateral use for derivatives trades
Collateral use in over-the-counter derivatives transactions and related margined activities such as repos and structured products increased 75% from $250 billion in 2001 to $437 billion this year, said the International Swaps and Derivatives Association…
Totem launches European power and gas valuation service
Totem Market Valuations, a UK-based provider of derivatives valuation services, has launched an over-the-counter European power and gas derivatives pricing service targeted at oil majors, merchant energy companies, banks and former state monopolies…
BIS opens representative office in Mexico
The Bank for International Settlements (BIS) has opened a representative office in Mexico City to serve as a centre for its activities in the Americas.
VAR “not to blame” for 1998 crisis, says leading academic
“There is no evidence to support the assertion that VAR-based risk management systems destabilise the financial system,” says University of California at Irvine professor Philippe Jorion, in a paper just published in the fall 2002 edition of The Journal…
Convergence Capital to launch first hedge fund
Convergence Capital, a newly formed hedge fund manager focused on Central and Eastern Europe and Russia, will go live with its first long/short equity fund Constar (Convergence strategic absolute return fund), in the next two to three weeks. The fund,…
BBH upgrades web platform for investors
US custodian Brown Brothers Harriman (BBH) went live with the upgrade of its web-based currency trading service FX WorldView last week, Brenda Kerins, head of FX e-commerce at BBH in New York told RiskNews' sister publication FX Week .
Abbey National signs up to Datasynapse's LiveCluster service
Abbey National Treasury Services has signed up for LiveCluster, a computer infrastructure software product developed by New York-based trading technology vendor DataSynapse. The UK bank will use the software to enhance the computation of its capital…
Riskmetrics aims for hedge funds
Peter Davies, recently appointed vice-chairman of New York-based risk management vendor Riskmetrics, has said the alternative investment industry - specifically hedge funds and funds of funds - is an area of focus for the company.
HSBC adds exotics derivatives trader
HSBC has hired Guillermo Gimenez as a senior exotic foreign exchange derivatives trader in London. Starting in late November, he will report to Frederic Boillereau, global head of exotic options trading.
First-half OTC derivatives volumes rise 15%
The value of over-the-counter derivatives notional outstandings grew to $128 trillion by June 30, up 15% from the figure at the end of last year, according to a study by the Bank for International Settlement (BIS). But much of the increase in the…
Client-driven credit default swaps business dries up in Japan
Trading volumes in Japanese credit default swaps were about one quarter of typical levels this week, with spreads tightening in a similar manner to that seen in Europe and the US.
Fisher lambasts US companies for hiding off-balance-sheet exposures
US undersecretary of the treasury Peter Fisher today launched an attack on companies that choose to use derivatives as a means of hiding total economic leverage from shareholders and creditors.
Basis trade opportunities decline as default market continues to tighten
The European default swap market continued to tighten substantially across certain sectors this week, correcting the recent dislocation between cash bonds and credit default swaps (CDS).
El Paso exits energy trading
US energy company El Paso announced plans to quit the energy trading business today as continued problems in the sector led it to post a third-quarter loss.
VAR “not to blame” for 1998 crisis, says leading academic
“There is no evidence to support the assertion that VAR-based risk management systems destabilise the financial system,” says University of California at Irvine professor Philippe Jorion, in a paper just published in the fall 2002 edition of The Journal…
Credit ratings come into FX focus
Credit ratings are becoming increasingly significant to foreign exchange market players, with downgrades increasing in the current economic downturn, market participants told RiskNews ' sister publication FX Week .
Europe allows wider role for op risk insurance in Cad 3
European banks and investment firms would be able to use operational risk insurance to reduce capital charges in all approaches to measuring op risk under new European Union (EU) capital adequacy rules.
UK’s Centrica signs five-year, £40 million weather hedge
British Gas Trading, a subsidiary of UK energy company Centrica, has concluded a £40 million weather hedge with Bermuda-based XL Capital. The multi-year deal may prove the largest in Europe this year.