Tag: clearing

clearing

Cross-Border Trading, Clearing Feature in New Derivatives Study

FIA today released a study on trading and clearing trends in derivatives markets. The study assesses market sentiment towards several major market structure trends, including the impact of capital requirements, the adoption of central clearing, the transition away from Libor, and the implementation of margin requirements on uncleared derivatives. The study includes insights on the views […]

HKEX’s OTC Clear Granted Regulatory Approval in Japan

Hong Kong Exchanges and Clearing’s (HKEX) subsidiary, OTC Clearing Hong Kong (OTC Clear), has received approval to offer client clearing services to banks in Japan. OTC Clear was set up in 2013 to provide OTC derivatives central clearing services. Profit & Loss reported last year that OTC Clear had identified FX as a growth area […]

FX Settlement Risk Has Increased; Exposures Down: BIS

FX settlement risk has increased since 2013 according to the Bank for International Settlements (BIS), both in relative and absolute terms, however the gross market value of outstanding FX and OTC derivatives has fallen, thanks largely to the growth in clearing. An article in the bank’s latest Quarterly Review says that in spite of “significant […]

FIA Voices Concern Over Proposed Swaps Clearing Rules

The Futures Industry Association (FIA) has issued a letter expressing concern that proposed cross-border clearing house rules do not create a comprehensive framework to facilitate access to foreign cleared markets by US customers. FIA’s comments were in response to two separate, but similar, rule proposals by the Commodity Futures Trading Commission (CFTC). The first, Exemption […]

Eurex Begins Clearing Euro Short-Term Rate Swaps

Eurex Clearing has cleared its first euro short-term rate (€STR) swap trades. The clearing house claims that this represents an important milestone in both the establishment of €STR as the new benchmark risk-free rate, and in expanding Eurex’s EUR-denominated product offering. BNP Paribas, Citi, Deutsche Bank, JP Morgan, Landesbank Baden-Württemberg (LLBW), Morgan Stanley, Nordea and […]

In the FICC of It

There is a long run list for this week’s In the FICC of It podcast, which kicks off with some welcome listener input into last week’s questions of algos intentionally losing money to throw the “order sniffers” off the scent and the challenges facing Singapore’s efforts to build an FX liquidity hub. Colin Lambert and […]

Is It Time to Change the Credit Model in FX?

In a new video interview with Profit & Loss Rick Schonberg, global head of ForexClear product development at LCH, is unequivocal in expressing his view that the current credit model in the FX industry is due for a change. “The model definitely needs to change,” he says. “What’s interesting is that the BIS numbers —  […]

Brexit Uncertainty Not Hampering RMB Trading

Brexit uncertainty hasn’t stopped RMB trading activity in the UK reaching record highs, according to a new report published by the City of London Corporation. The report, London RMB Business Quarterly, shows that an average of £85 billion of RMB was traded in the UK on a daily basis in the second quarter of 2019, […]

HKEX Eyes FX Clearing Growth

Hong Kong Exchanges & Clearing (HKEX) becomes the latest major exchange group to identify FX clearing as a growth area, after announcing last week that its OTC Clear service handled its first deliverable FX swaps and forward contracts. The banks involved in the transaction – which was hailed by HKEX as “a step forward in […]

Eurex Begins Clearing Cross Currency Swaps

Eurex Clearing has cleared its first cross currency swap transactions, with the trades being submitted by JP Morgan and Morgan Stanley. In a release issued today, Deutsche Börse Group says that cross currency swaps represent an “important component” of its overall FX strategy, which it is executing across Eurex, Eurex Clearing and 360T. Eurex Clearing’s […]