Commodity derivatives
Oil funds want to reduce risk. Will investors let them?
Despite posting big losses, funds that track front-month contracts remain popular with investors
Derivatives house of the year: Macquarie Group
Energy Risk Awards 2020: Firm’s wide commodities presence, physical and financial risk expertise and financing capabilities result in standout deals
WisdomTree shuts oil ETPs after Shell terminates swap deal
Counterparty departure forces closure of eight oil trackers with $580 million of assets
Oil futures and options see record volumes
Brent crude contract traded volumes hit 3.4 million on March 9
At US G-Sibs, rates derivatives notionals the lowest since 2014
Banks cut interest rate swaps notionals by -18% year-on-year
EU derivatives markets highly concentrated
CCPs hold 41% of interest rate derivatives notional exposures
New CVA regime to hike affected RWAs fivefold at EU banks
Systemically important lenders face 622% increase in CVA RWAs; but effect could be less if existing exemptions are carried over
Equity derivatives surge at US G-Sibs
Gross notionals have increased 8.9% year-on-year
Some see Esma reining in position limits after review
The scope of position limits could shrink to cover just the major benchmarks, one executive argues
JP Morgan turns to machine learning for options hedging
New models sidestep Black-Scholes and could slash hedging costs for some derivatives by up to 80%
CFTC's Berkovitz puts his weight behind position limits
New rule on speculative commodity trades will be proposed within weeks
US swaps end-users cry foul over SA-CCR punch
Capital on non-margined trades jumps 90%, and energy firms face double hit
On hedging, BP and Shell set different timelines
Shell has much larger share of derivatives classified as current than BP
Wind firming caps found better than swaps at reducing risk
Wind firming deals claim to address intermittency and stabilise renewable generator cashflow, but how effective are they?
Lobbyists seek eleventh-hour Brexit relief for UK futures
EC urged to extend CCP safe harbour so listed derivatives don’t switch to OTC
From trend follower to trailblazer
New fund targets commodities others are “scared” to trade – from asphalt to glass panels
Derivatives house of the year, Asia: BNP Paribas
Energy Risk Asia awards, 2018: BNP Paribas continues to boost its presence in Asian commodities with a focus on bespoke solutions
Base metals house of the year, Asia: BOCI
Energy Risk Asia awards, 2018: Chinese expertise enables BOCI to attract base metals business in Asia and beyond
Coal house of the year, Asia: Tata International Singapore
Energy Risk Asia awards, 2018: Vietnamese deal puts Tata International Singapore on the map
EU derivatives market adds €55 trillion in 2017
Interest rate products account for 69% of gross notionals
Spotlight on auction in €114m Nasdaq clearing blow-up
Four-member auction may have turned 39% margin breach into huge default fund loss
UK derivatives values grow on forex activity
Foreign exchange contact values leap £0.4 trillion in second quarter
Sanctions and renewables inform LME product plans
Metal exchange expansion focuses on effects of geopolitics and boom in demand for batteries
UK derivatives market continues to shrink
Gross market values lowest since December 2007