Derivs - Clearing and Exchanges

LCH.Clearnet’s SwapClear has become the first central counterparty to offer global clearing of inflation swaps, which it believes will provide better risk management for buyside firms.

The overall credit default swap and interest rate derivative notionals reported to swap data repositories last week decreased by 22% and 30% respectively compared to the same week last year, according to data from the International Swaps and Derivatives Association.

The internationalisation of China’s capital markets, dollar/offshore renminbi currency volatility and northbound investment on the Shanghai-Hong Kong Stock Connect programme are driving more trading in renminbi currency futures, according to Hong Kong exchanges and Clearing Limited.

A central counterparty stress test framework proposed by LCH.Clearnet assesses risk impacts in several adaptive scenarios under the cover 2 requirement and a default auctioning protocol.

Progress on global derivatives reform is at a critical juncture. The goal of enhanced transparency, identified by the G20 following the 2008 crisis as crucial to the supervision of the financial system, remains only partly addressed because of a number of practical and legal barriers that limit data sharing across jurisdictions. As a result, the cross-border identification of systemic risk remains challenging for macroprudential authorities.

The International Swaps and Derivatives Association unveiled the members of the five regional determinations committees that make binding decisions regarding credit events, succession events and auctions to determine the final price for credit default swap settlement globally.

The overall credit default swap notionals and trade counts that were reported to swap data repositories last week both increased by 15% compared to the same time last year, according to data from the International Swaps and Derivatives Association.

The overall interest rate notionals and trades counts that were reported to swap data repositories last week increased by 22% and 35%, respectively, from the same time last year, according to data from the International Swaps and Derivatives Association.

The Moscow Exchange is overhauling its settlement period for Russian federal government bond (OFZ) derivatives by focusing on the automatic delivery of traded contracts.

Eurex will launch options on Euro-Bund futures with weekly expiries in April, which will allow investors to gain short term exposure to interest rate moves and event-driven activity, experts say.

LCH.Clearnet is replacing Gavin Wells as global head of CDSClear by promoting the product's head of in-business risk.

US buysiders are struggling to access overseas liquidity as many dealers do not want to trade with US clients due to regulations, such as Dodd-Frank, resulting in increased fragmentation and smaller liquidity pools.