Derivatives
Cleared NDF volumes still 'tiny', but Sef share grows
Swap execution facilities gain traction in top four NDF currencies
Risk recycling issues stall China's forex option market
Onshore corporates yet to take advantage of increasing hedging options
USD/CHF options burn banks amid illiquid markets
Traders say dealers who lost money in last month's huge Swiss franc move are likely to have done so because liquidity evaporated, making it impossible to hedge sold options
FCA to probe possible conflicts in barrier options
The UK's Financial Conduct Authority will examine possible conflicts in the trading of foreign exchange options; some participants avoid these products in thinly traded markets
LCH rebuffs fears of NDF clearing crunch
Esma's most aggressive timeline could force more than 100 firms to clear NDFs from September 2015, with ForexClear the only currently authorised European CCP
French regulator finds market manipulation using Emir data
Europe's derivatives reporting regime needs work, but the AMF has already used the data to identify market manipulation, which is now being investigated
Consultants fear mis-selling as forex brokers discover new options
Foreign exchange brokers – which execute spot and forward currency trades with smaller businesses – are now offering options-based structures to clients in the UK. Consultants worry about the potential for mis-selling as the trades they are seeing are…
Global trade reporting ‘a mess', Sibos delegates told
DTCC and Commerzbank tell Sibos delegates that global derivatives trade reporting requires further regulatory intervention to be a success
Best swap execution facility: GFI
Markets are going through a perfect storm as regulation, a cyclical downturn and low volatility dampen activity
Access to collateral may prove problematic
Academic study warns of ‘immoblised’ inventories
Dealers still dominate activity in complex FX instruments- BIS
Findings contrast with latest Triennial Survey flagging non-dealer market participants as key drivers of growth
Asset quality trumps hedging cost in volatile currencies
High cost of hedging out forex exposure in volatile currencies is unnecessary due to the correlation between the underlying asset and currency it is denominated in, investors believe
Tarf trouble in Taiwan: Sliding renminbi threatens heavy losses
Derivatives linked to the US dollar-renminbi exchange rate have been successful during the Chinese currency’s four-year rise. But now it is sliding, corporate users are looking at heavy losses
Industry to meet regulators on FX options clearing plans
Industry plans to arrive at a workable framework for FX options clearing gather steam
Clearing costs creep up for clients
Some futures commission merchants are raising fees for clearing and collateral transformation services, buy-siders say
Currency derivatives - regulating with consistency
The chief executive and chairman of the Wholesale Markets Brokers' Association (WMBA) say regulatory complexities have left market participants in the dark on derivatives
European Commission launches consultation on FX definitions
EC consultation in response to ESMA's letter dated February 14
Panel clashes on best execution and NDF clearing in Boston
A panel at the annual FX Invest conference in Boston tackled the difficulties of NDF clearing and best execution costs
India reverses curbs on USD/INR trading
India's financial regulator has rolled back emergency measures it introduced last year as USD/INR rate stabilises
OTF transparency waivers survive final Mifid debate
European disclosure regime for derivatives platforms diverges from that in US
FX futures set to benefit from regulatory shifts, Greenwich says
Capital requirements, initial margin and mandatory clearing of options and NDFs will boost futures trading
StanChart looks to eclipse rivals in OTC derivatives
New 'Eclipse' business under Andrew Sterry and Luke Brereton will focus on execution, clearing, liquidity and portfolio services in over-the-counter derivatives
FX structurers see mixed demand for cross-asset hedges
Increased hedging costs in rates and credit has led some investors towards FX structured products, but some remain concerned that correlation may not hold up
Rates volatility buoys hopes for currency forwards desks
Banks are preparing for a return of investor appetite for FX forwards, driven by the prospect of interest rate hikes, but some face challenges when it comes to expanding their teams as a result of the Libor scandal. Michael Watt reports