Derivs - Clearing and Exchanges

In this round up, Hong Kong's Securities and Futures Commission put an ETF link on hold, venture capital funds will get more tax cuts, and Hong Kong signed up to the fourth closer economic partnership agreement with the Mainland.

The depository arm of Canada’s TMX Group is testing a bond link with the Shanghai Clearing House, offering the latest way for foreign investors to access China’s onshore bond market. But while the new link will give Canadian and US investors more freedom to choose onshore dealers, it is unlikely to address some investors’ worries over privacy.

Eurex Exchange, the derivatives exchange arm of Deutsche Bӧrse, is considering increasing its threshold for block trades in Euro Stoxx options. This would mean a greater share of trades having to be conducted without the privacy protections accorded to block trades.

LCH, the London-based clearing house, has pumped up its compression offering, reducing members’ notional outstanding by $4.5bn through its FX clearing arm, ForexClear.

In this round-up, People’s Bank of China (PBoC) signs a currency swap with Indonesia, Shanghai and Shenzhen Stock Exchanges publish rules to limit the length of trading halts, and the Chinese authorities publish new rules to boost the domestic free trade zones (FTZs).

In this round-up, China and the Philippines sign Memorandum of Understanding (MoU) for a new Panda issuance, survey finds that 64% of Chinese investors choose to invest domestically rather than overseas, and foreign firms are getting approvals to help China build a nationwide credit information monitoring system.

Regulators' attempts to incentivise market participants to clear derivatives centrally have broadly worked, according to global watchdogs, though there are lingering concerns.

Representatives from European Union (EU) member states were debating the role of central banks within the EU on Tuesday, as part of discussions over controversial proposals for a new framework for supervising clearing houses.

European Union governments have pushed back against the European Commission’s proposed changes to the bloc’s financial regulators, opting to roll back the centralisation of power to independent executive boards.

In this round-up, China’s foreign reserves in October decrease $34bn due to the stronger dollar, monthly exports climbed more than expected, Singapore Exchange signed cooperation agreements to develop more opportunities for Chinese enterprises in Singapore.

Hong Kong Exchanges and Clearing (HKEX) has partnered with Digital Asset to develop a post-trade settlement and allocation system based on blockchain technology. It will cover northbound trading on Stock Connect.

The chief executive of derivatives industry body ISDA has called for more clarity from the European Union over plans to help mitigate the disruptive impact of a no-deal Brexit on derivatives markets.