Risk magazine
Prebon Yamane launches py match for Singapore dollar
Brokerage house Prebon Yamane Asia-Pacific has extended py match, its online automated matching system for floating rate reset risk positions in swap portfolios, to include Singapore dollars.
Singapore issues risk management guidelines
Guidelines on sound risk management practices issued by Singapore regulators today emphasise the three pillars of adequate management oversight, sound risk management policies and strong risk measurement ability.
Airline exposures cast shadow over CDOs and derivatives trading
Collateralised debt obligation (CDO) investors assessing their credit risk exposure should be aware that recovery prospects among airlines bonds vary dramatically from company to company, according to Goldman Sachs.
Vivendi spreads widen due to Cegetel bid fears
Credit protection spreads on Vivendi Universal debt widened by 60 basis points yesterday as speculation again mounted that the French telecoms company would attempt to boost its stake in French mobile telephone company Cegetel. Five-year credit default…
Defaults by EU companies outpace global and US counterparts, says S&P
The default rate in the European Union (EU) continued to outpace its global and US counterparts during the third quarter, according to rating agency Standard & Poor's (S&P). A total of 20 rated EU entities have defaulted on rated debt worth $8.7 billion…
EU Cad 3 paper delayed to mid-November
The European Commission hopes to issue an update on progress with its complex third bank capital adequacy directive (Cad 3) in mid-November, a delay to its original plan to publish a paper in late October, a commission spokesman said.
Basel II asset securitisation paper issued
Global banking regulators yesterday issued their delayed working paper on the treatment of asset securitisations under the complex, risk-based Basel II bank capital accord.
Wall Street Systems names McDermott as Japan country manager
US-based Wall Street Systems has hired Sean McDermott as its country manager for Japan, as part of its on-going expansion into the Asia-Pacific markets.
LCH selects onExchange for OTC electricity clearing
Financial technology firm onExchange has signed up with the London Clearing House (LCH) to provide clearing for over-the-counter electricity contracts on the soon-to-be-launched European Energy Derivatives Exchange (Endex).
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.
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.