News
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…
Bursa Malaysia sets up Shariah-compliant commodity platform
Commodities exchange Bursa Malaysia has signed an agreement with 26 companies to launch a Shariah-compliant commodity trading platform, Commodity Murabahah House (CMH).
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.
New head for CME's proposed European clearing house
The Chicago Mercantile Exchange (CME) has named Andrew Lamb as chief executive of its European clearing house, CME Clearing Europe, subject to regulatory approval of the venture.
2008 Loss Data Collection Exercise results released
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US Wrap: Morgan Stanley offers Brazil through Exportfinans
Morgan Stanley has launched a new note offering exposure to the iShares MSCI Brazil Index fund. The external credit of Eksportfinans has been used to package the six-month trade, which gives an annualised coupon of 11-15% provided that the fund stays…
Industry still failing on risk management, surveys find
Two years after the start of the credit crisis, many financial institutions are still without adequate risk management, according to two recent surveys.
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.
Spanish rules cushioned banks from the crisis, says top regulator
In an exclusive interview with Risk , José María Roldán, director-general of banking regulation at the Banco de España, explains how a unique regulatory framework has led Spanish banks to adopt prudent trading and risk management processes that paid off…
Spectron brokers first UK month-ahead power index deal
Interdealer broker Spectron's UK power desk yesterday brokered the first reported trade based on the new London Energy Brokers' Association (LEBA) Month-ahead UK Power index.
Regulator re-opens speculation debate
At the first of three hearings on possible methods to control oil price speculation today, the Commodity Futures Trading Commission (CFTC) chairman called for serious consideration of the need for position limits in energy trading.
Banks' CDS spreads tighten after positive Q2
Market sentiment towards financials has improved in the past week as the continued wave of positive second-quarter bank results helped nudge the cost of credit protection lower on all major US and European banks.
Cooksey to manage UK government's stakes in banks
David Cooksey will join UK Financial Investments (UKFI), the company set up to manage the government's stakes in UK banks, as chairman on August 1.