Derivs - Credit

Market participants are divided over the importance of having total return swaps (TRS) for the additional tier one (AT1) market, after investment banks started offering the contracts earlier this month.

Intercontinental Exchange (ICE), the exchange and clearing house operator, on Sunday revealed it had added Bank of America’s fixed income index platform to its ICE Data Services offering.

We noted last month that orphaned CDS seemed to be on the rise, with both EDP in Portugal and Italy’s Wind possibly losing their relationships with deliverable obligations.

Director of the National Economic Council Gary Cohn has singled out clearing houses as “the next problem” that the financial industry will have to confront.

The European derivatives market has a combined notional value of $478tr, with 330m transactions outstanding, said the European Securities and Markets Authority (ESMA) after it analysed data from six EU-authorised trade repositories.

The CEO of London Stock Exchange Group, Xavier Rolet, will leave the company by the end of December next year, it was revealed in a statement on Thursday.

The market for credit default swaps (CDS) in China is still in its very early stages, but the government is looking to promote their use and the first foreign bank has already got involved.

A partner at Mayer Brown in New York has moved to Linklaters, which is pushing to expand its US capital markets business.

Jakob von Weizsäcker, the European Parliament's co-rapporteur for draft central counterparty (CCP) clearing house resolution regulation, said on Monday that he will table an amendment to create a new resolution fund for the entities, a move that could cost €500bn but is unlikely to happen.

European and US derivatives regulators have struck common ground in their approach to electronic trading and agreed equivalence in their oversight of the OTC market, a move that will reduce margin requirements for cross-border market participants.

Deutsche Bank has hired a big hitter from Goldman betting on the return of volatility to credit trading.

Chairman of the Commodity Futures Trading Commission Christopher Giancarlo on Wednesday announced his intention to postpone a decision on the derivatives threshold that forces firms to register as swap dealers.