Derivs - Clearing and Exchanges

China Construction Bank (CCB) London branch is set to offer its debut multi-currency certificates of deposit (CDs) in the next few weeks. Jinming Hu, co-head of Treasury at CCB London Branch, told GlobalRMB that they would include renminbi-denominated offerings.

The London Metal Exchange (LME) has accepted offshore renminbi (CNH) as eligible cash collateral for its clearing house, LME Clear, following regulatory approval from the Bank of England. LME Clear told GlobalRMB that the initiative laid the foundation for further expansion in the future.

Multiple listings of ETFs could become a smart strategy for firms looking to attract a broader investor base for products sold under the renminbi qualified foreign institutional investors (RQFII) scheme. An RQFII ETF that was first listed in London was recently taken to Euronext Paris via Euroclear Bank, and Euroclear reckons the move is paving the way for others to exploit RMB alternatives.

Changing regulations, evolving cost structures and collateral optimisation systems moving to the front office are forcing buyside firms to consider outsourcing their operations, according to a leading market research firm.

The Australian Securities Exchange has launched FlexClear, an over-the-counter service for equities options that is expected to benefit buyside firms looking to tailor strategies through central clearing.

Société Générale Prime Services has begun executing and clearing non-deliverable forwards through a central counterparty, to allow users to gain margin efficiency and risk protection.

The board of Euronext NV has appointed an interim CEO following Dominique Cerutti’s resignation announcement on April 22.

Interest rate derivative trade counts reported to swap data repositories last week increased by 27%, marking the second week in a row of expansion versus the same week in 2014, according to data from the International Swaps and Derivatives Association.

As part of its business expansion into the Americas, the trade repository UnaVista has hired a regulatory, risk and compliance veteran for the firm’s US expansion efforts.

The Chicago Board Options Exchange is to launch futures and options on the CBOE Volatility Index with weekly expiries.

The European Securities and Markets Authority approved operational status for 10 central counterparties to operate in third countries as part of the European Market Infrastructure Regulation.

The Australian Securities Exchange has joined up with the China Futures Association to expand commodity and interest rate derivative markets in the Pacific through shared training and personnel exchanges.