Derivs - Clearing and Exchanges

The European Central Bank is pushing for greater powers over EU-based derivatives clearing houses, according to a leaked ECB presentation obtained by GlobalCapital. The move follows a successful effort by the ECB to gain powers over foreign clearing houses.

European Commission officials have played down concerns expressed by the Commodity Futures Trading Commission over a controversial EC proposal that seeks to revise European oversight of foreign clearing houses. The comments garnered a curt response from a senior CFTC official.

The clearing arm of Eurex, the German derivatives bourse, is widening the scope of its partnership programme to cover repo and over the counter (OTC) FX markets.

The UK Treasury has published a draft statutory instrument that will allow UK authorities to properly oversee UK over-the-counter (OTC) derivatives markets in “any scenario” after the UK leaves the European Union.

London Stock Exchange Group on Friday announced that it would increase its stake in London-based clearing house company LCH Group by up to 15.1%, bringing its holdings to over 80%.

Dartington Hall Trust, a charity and social enterprise in Devon in the UK, is looking to attract bondholders for a secured deal open to retail investors. It has eschewed the London Stock Exchange’s order book for retail bonds (ORB) to use NEX instead.

Jörg Kukies, secretary of state at the German Ministry of Finance, suggested that the EU’s proposed covered bond directive should not dilute the quality of the product too much. He also wanted to see developments on the Capital Market Union (CMU) by the end of the year and called for an agreement on third-country central counterparties (CCPs).

Sumitomo Mitsui Trust Bank announced a mandate on Monday for its first ever euro-denominated bond. The senior notes will finance green projects. Meanwhile, new issuer Euroclear Bank completed a deal last Friday.

The European Union is set to reveal its policy on the clearing of euro denominated products in 'third countries' on Tuesday. Implementing a location policy that would deny liquidity to foreign clearing houses would stifle cross-border competition, and ramp up costs. It must not happen.

The Depository Trust & Clearing Corporation (DTCC) on Monday committed to expanding its use of cloud technology “across a much greater range of its services and applications” over the next three to five years.

Renminbi denominated gold futures contracts will be available on Hong Kong Stock Exchange (HKEX) for the first time in June 2017, Charles Li, the bourse’s CEO, said on Monday. Li also signalled that more Connect schemes will emerge after Bond Connect, and that southbound volumes have plenty of room to grow.

The Bond Connect scheme allowing foreign investors access to the Mainland bond markets will materialise in 2017, Chinese premier Li Keqiang announced during a press briefing on March 15.