Month: July 2010

New Derivatives Clearinghouses to Launch as Regulation Looms

A raft of new clearinghouse initiatives are underway in anticipation of sweeping regulation in the over-the-counter derivatives markets. The initiatives were announced the same week the Group of 20 major economies converged in Toronto (26 June) and reaffirmed their commitment to regulating the vast OTC derivatives markets by forcing as many trades as possible onto […]

FX Dealing Banks Form New Representative Body

Major players in the global foreign exchange industry are joining together to form a new representative body to examine ways to reduce systemic risk in the FX marketplace for participants. The new body, the AFME FX division, will support efforts to promote an efficient global FX market, help develop market best practice, and monitor developments […]

US Moves on Regulation

As Profit & Loss was going to press, the Dodd-Frank Bill was passing through the US Senate. Colin Lambert takes a look at the bill and discusses its implications. The regulatory landscape took a major step forward in late June with Congress agreeing to the Dodd-Frank US Financial Reform Bill, aimed at monitoring, reforming and […]

New York

Whatever next? A new survey finds that regulators and market participants are “surprisingly aligned” on what the key components of a workable derivatives market structure should be in the future, with changes likely to revitalise the listed and over-the-counter markets in a manner that benefits all. The survey was part of a research report co-authored […]

New York

Happy to oblige. The Depository Trust & Clearing Corp (DTCC) has announced that it has posted on its website, data compiled from credit default swaps trades registered in DTCC’s Warehouse Trust Company at the request of market participants. Participants will use it to assess which of the various single reference entities might have sufficient liquidity […]

New York

The end of repo. Well actually not really, what has happened is that the Federal Reserve Bank of New York has published a white paper on the work of the Tri-Party Repurchase Agreement (Repo) Infrastructure Reform Task Force. The paper, which is the group’s final report, highlights policy concerns over weaknesses in the infrastructure of […]

London

Another day, another survey. The latest in a seemingly inexhaustible supply of industry surveys focuses on senior operations staff at investment firms involved in over-the-counter derivatives trading. The survey, conducted at an OpenLink sponsored webinar, looks at the relative importance of risk management concerns faced by professionals in the growing electronic environment. A majority of […]

London

Out you go. LCH Clearnet, which operates the interest rate swap clearing service SwapClear, is to begin using the overnight index swap rate curves to discount its $218 trillion IRS portfolio. Previously, in line with market practice, the portfolio was discounted using the London interbank offered rate (Libor). “After extensive consultation with market participants, LCH.Clearnet […]

London

Algos come to FI. Credit Suisse has launched Onyx, an algorithmic trading platform dedicated to fixed income, which is available on the bank’s PrimeTrade platform. The initial iteration offers a suite of algorithmic execution for pair strategies between fixed income futures and cash US Treasuries. The algorithms are the same as those designed by and […]

Venezuela

Venezuela has launched a new regulated foreign exchange market ahead of legislative elections in September. The launch is the latest attempt by the government of President Hugo Chavez to stop a rapid depreciation of the bolivar (VEF), which is driving inflation higher. The move follows the government’s decision in May to close a legal loophole […]