Demand Derivatives, a creator of what it terms “novel” derivative instruments, and GMEX Group, a provider of exchange and post-trade business technology solutions, have announced they will combine forces to launch what they term a “revolutionary” US-regulated futures exchange, RealDemand Board of Trade (RealBOT), and clearing house, RealDemand Clearing (RealClear).
The new businesses are slated to open in 2019, subject to CFTC and SEC approval, and the two firms claim they will create “unique and complete solutions to problems currently affecting the futures industry”.
Deutsche Börse Market Data + Services and the exchange group’s FX trading venue 360T are launching a product offering covering FX spot market as well as FX swap market data. The swap market information is based on a contribution model of liquidity providers developed in cooperation with the Germany-based company Digitec. The Market Data + Services group will act as licensor of the new offering and the data is available via the data feed of Deutsche Börse as well as via 360T’s streaming FIX API as “Swap Data Feed” SDF.
CME Group says it will launch Sterling Overnight Index Average (Sonia) futures on October 1, 2018, pending regulatory review.
Two new Sonia futures will be launched; a quarterly IMM-dated contract observing the recommended specifications of the working group on sterling risk free reference rates; and a Bank of England Monetary Policy Committee (MPC) meeting dated contract. “The MPC Sonia future is designed to meet the needs of market participants who require greater precision in managing exposure between the dates of the MPC meetings,” CME says.
The CME Group has delisted its EUR/TRY futures contract, effective immediately, and plans to delist its USD/TRY futures contract while also launching a new TRY/USD futures contract in September.
The EUR/TRY contract was listed for trading on CME Globex, as well as for submission for clearing via CME ClearPort. There was no open interest in the EUR/TRY contract at the time of delisting.
For the USD/TRY contract, all contract months that are listed beyond September 2018 have been delisted, meaning that although this contract will continue to be listed on CME Globex and CME ClearPort for the time being, after the market close on September 18 it will be permanently delisted. There is no open interest in the contract months after September.
The total volume of FX futures traded on SGX in July was 1.7 million, down 8% month-on-month, despite the exchange seeing record volumes in its USD/CNH futures.
Although volumes were down last month compared to June, they were still up 124% year-on-year. The monthly decrease appears to have been driven by a decline in volumes on SGX’s INR/USD futures, with trading down 23% m-o-m but still up 81% y-o-y.
The bright spot for SGX in July was trading on its USD/CNH futures, as a record $61.5 billion in notional was traded on these contracts, bringing the total volume of these contracts cleared to over $255 billion this year.
CME Group is planning to change the time that its FX options expire to 10 am EST.
This change will begin with contracts expiring after June 9, 2019. Clients across time zones will be able to trade listed options that expire at the same time as most OTC contracts.
"Aligning to the 10 am New York OTC convention makes it easier for global clients to take advantage of CME Group's leading electronic FX options platform and transfer risk more seamlessly between OTC and our cleared, deliverable solution," says Paul Houston, CME Group global head of FX products. "As more institutions need to comply with uncleared margin rules, we're extremely focused on providing a regulated FX options solution that is capital efficient."
The Supervisory Board of Euronext has unanimously approved the appointment of Chris Topple as CEO of Euronext London, head of global sales and a member of the Managing Board of Euronext, subject to all relevant shareholder and regulatory approval.
Topple, who worked extensively in brokerage and clearing services throughout his career, will oversee sales across all asset classes. He will take up his new role based in London on 15 October 2018. Paul Humphrey, current interim CEO of Euronext London and head of global sales, will remain in his current role as global head of FICC.
Singapore Exchange (SGX) today reported a net profit of S$363.2 million for the year ending June 30, a 7% increase from the previous year.
This partially driven by a 12% increase in revenues from the exchange’s derivatives business, up to S$339.8 million, meaning that this business line contributed 40% of SGX’s total revenue.
Loh Boon Chye, CEO of SGX, says: “FY2018 was a record milestone in our financial performance as we achieved our highest revenue since listing in 2000 and the highest profit in five years.
LCH says it has cleared the first dollar interest rate swaps referencing the Secured Overnight Financing Rate (SOFR), which was identified last year by a committee established by the Federal Reserve as representing the best alternative reference rate for benchmarking dollar interest rate derivatives.
SOFR was first published by the Federal Reserve Bank of New York in April 2018, LCH says Credit Suisse, Goldman Sachs and JP Morgan were among the first participants to clear swaps using the new rate.
LCH has launched deliverable FX options clearing. The move incorporates the first physical settlement service for cleared FX products, which LCH has developed in collaboration with CLS.
FX options clearing will exist as part of LCH's ForexClear service, which currently clears around $70 billion in average daily volume.
Paddy Boyle, global head of ForexClear at LCH, says: "Clearing FX options is an exciting milestone for LCH and the FX market. The launch of this service extends the benefits of clearing to more products and participants in the FX market, enabling them to benefit from the risk management, margin, capital and operational efficiencies of clearing. We're delighted to partner with CLS to deliver this innovative new service."