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Exchanges & Clearing

Clearing Mexican Peso Swaps Just Got a Little Easier IHS Markit’s MarkitSERV has expanded its global network of derivatives clearinghouses by connecting to Asigna, the clearinghouse for Mexican listed and standardised derivatives. With the new connection, it will provide standardised workflow and connectivity for matching, confirming and clearing Mexican peso TIIE 28 swaps. “With the connection between MarkitSERV and Asigna, we can offer our clients an efficient and secure channel to transmit confirmed TIIE swap data to our clearinghouse,” says Catalina Clavé Almeida, CEO at Asigna.  “It also helps global banks on the MarkitSERV network do business in our market.”
Coinbase Launches Institutional Crypto Suite Coinbase, a cryptocurrency exchange based in San Francisco, has launched a new suite of services aimed at institutional level market participants. With one of these services, Coinbase Custody, the firm says that it has leveraged its experience of safely storing more than $20 billion of cryptocurrency to create the most secure crypto storage solution available. “In partnership with an SEC-regulated broker-dealer, Coinbase Custody is proud to offer a service that couples Coinbase’s cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer,” says Coinbase in announcing the news.
CME Launches Ether Reference Rate, Real Time Index CME Group has launched a reference rate for ether, the native cryptocurrency of the Etherium network. The CME CF Ether-Dollar Reference Rate, which will provide a daily benchmark price in US dollars at 4 pm London time, and CME CF Ether-Dollar Real Time Index, which will allow users access to a real-time ether price in US dollars. Both the Ether Reference Rate and Ether Real Time Index will be calculated by Crypto Facilities and will be based on transactions and order book activity from two cryptocurrency exchanges: Kraken and Bitstamp.
CME Group to List USD Eris Interest Rate Swap Futures CME and Eris Exchange have entered into an exclusive licensing agreement to list USD Eris interest rate swap futures, which already clear at CME Clearing. Pending regulatory approval, Eris futures will be listed with and subject to the rules and regulations of CBOT, starting in the fourth quarter of 2018, and existing open interest in the contracts will be transferred to CME Group at that time. The Eris futures will trade alongside the MAC swap futures. Until the migration in late 2018, Eris swap futures will remain listed at Eris Exchange and cleared at CME Clearing, where they are subject to margin offsets with CME Group's interest rate futures.
SGX Posts Continued FX Growth SGX has reported that 1.09 million FX futures contracts were traded on its platform last month, up 88% compared to April 2017. This also represents the fourth consecutive month that the number FX contracts on the exchange have exceeded over 1 million. The cumulative open interest for all FX contracts is up 37% m-o-m and 74% y-o-y. In April, SGX also reached the milestone of $ 1 trillion worth of cumulative notional trading in INR/USD and USD/CNH futures since their inception in 2013 and 2014, respectively.
Singapore Sets Date for Mandatory OTC Clearing The Monetary Authority of Singapore (MAS) says it will introduce regulations to require OTC derivatives to be cleared on central counterparties (CCPs) with effect from 1 October 2018. MAS says central clearing will make the trading of OTC derivatives in Singapore safer as it mitigates counterparty credit risks inherent in these trades. The mandatory clearing requirement will apply to Singapore dollar and US dollar fixed-floating interest rate swaps as these are the most widely traded interest rate derivatives in Singapore. Banks whose gross notional outstanding OTC derivatives exceed $20 billion will be required to clear their trades through CCPs that are regulated by MAS.
Cboe SEF Adds NDF Pairs Cboe Global Markets has announced that its swap execution facility, Cboe SEF, has launched trading of USD/RUB and USD/PEN non-deliverable foreign exchange forward currency pairs. The SEF, which launched NDF trading in December 2017, now supports trading in 12 pairs. Bryan Harkins, executive vice president and co-head, markets division, says, “As we continue to build this new market, we have received strong interest from firms across the globe, particularly buy-side firms, many of which have been interested in trading these newly-listed currency pairs.”
Cboe Forms Markets Division: Names Heads Cboe has formed a Markets division to unify product, sales, business development and account coverage personnel across the company's US equities and options, ETP listings, global derivatives and FX businesses. The new division will be supported by multi-asset resource teams and headed by Andy Lowenthal and Bryan Harkins, who have been appointed executive vice presidents and co-heads. Lowenthal has been leading Cboe's global derivatives group, while Harkins led Cboe's US equities business, comprising four distinct stock exchanges, as well as the firm's global FX business
Coinfloor Launches Cryptocurrency Futures Exchange Coinfloor, a group of cryptocurrency exchanges targeting institutional and sophisticated retail traders, has launched CoinfloorEX – a cryptocurrency futures exchange. CoinfloorEX will offer for the first time ever physically delivered cryptocurrency futures contracts, which the firm says will protect investors and traders against price slippage on positions at time of settlement, as well as allay concerns of market manipulation. “The cash settled futures have been around since 2011 and so far they haven’t succeeded very much. When you talk to the institutional players they all want physically delivered futures,” says Mark Lamb, co-founder of Coinfloor.
SGX FX Volumes Double YoY in February The aggregate volume for SGX FX futures stayed above 1 million contracts, or approximately US$ 53 billion, for the full month, representing year-on-year (y-o-y) growth of 99.3%. The average daily volume (ADV) of FX contracts traded on the exchange in February was 1.17 million. On a Year-to-Date (YTD) basis, this represents an increase of 123% over the corresponding period in 2017. SGX’s USD/CNH futures saw a pick-up in activity last month, with 10 successive days of trading in excess of $1 billion, including two consecutive days of trading above $2 billion.