Derivs - Credit

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.

Clearing experts vigorously debated the topic of central counterparty (CCP) recovery and resolution this week at the Futures Industry Association's International Derivatives Expo (IDX).

The contingent convertible (CoCo) bank capital market received all the plaudits on Wednesday, when Banco Popular Español was forced into a “rescue” by Santander.

IHS Markit has launched a new end-to-end collateral management platform that can be used to calculate margin, settle margin calls and settle margin disputes.

The debate on clearing euro derivatives showed signs of heating up on Wednesday, when a French regulator speaking at the International Derivatives Expo (IDX) in London insisted that the activity should take place in the eurozone.

European Securities and Markets Authority chair Steven Maijoor on Wednesday said that any suggestion of further delaying implementation of the Market in Financial Instruments Directive II (MiFID II) was almost "fake news", and that the massive transparency legislation would go ahead as planned in January 2018.

The major derivative exchanges' May volume figures have shown increased activity despite low volatility across markets, with European exchanges posting higher activity than their US counterparts.

Intercontinental Exchange chief Jeffrey Sprecher on Tuesday compared the shutting down of the Chicago Mercantile Exchange's (CME) clearing and exchange operation in London to a "canary in a coalmine" as the UK's European Union exit draws closer.

Italian credit default swap levels have not reacted dramatically to the prospect of sooner than expected elections, but politics and the country’s banking sector are still capable of triggering big slides, writes Gavan Nolan.

The European Securities and Markets Authority (ESMA) has warned regional regulators against a potential race to the bottom to attract UK business in the aftermath of the Brexit vote, writes Costas Mourselas.

NEX Group has appointed Samantha Wren as its group chief financial officer after Stuart Bridges decided to leave the company.

Euronext has appointed Alain Courbebaisse as chief information and technology officer as it nears the introduction of its Optiq trading platform.