Derivs - Credit

Widening spreads between 2003 and 2014 French sovereign CDS contracts reversed this week, but with a market friendly outcome still not secure another blow-out could happen, writes Gavan Nolan.

First quarter figures from CME Group, Deutsche Börse and the Spanish BME showed a lack of growth in derivatives volumes at the start of 2017

Hong Kong Exchanges and Clearing (HKEX) has announced the appointments of three members to its board.

The Basel Committee on Banking Supervision (BCBS) has issued a report that analyses the adoption status of Basel III standards for each of its member jurisdictions, highlighting that many regions have not yet published draft derivative regulations.

The European Stability and Risk Board (ESRB) has backed calls to introduce a mechanism that will allow regional authorities to rapidly suspend clearing obligations, highlighting that the measure should only be used in “crisis periods."

French election anxieties dropped out of derivative markets with astonishing speed this week, as centrist pro-EU candidate Emmanuel Macron’s first round election showing set him on course for the French presidency.

Goldman Sachs, for once, is not the darling of the Street, as first quarter numbers from the US major banks show the firm struggling to keep up with its peers, despite a benign backdrop for credit trading, the major strength of its fixed income division.

Theresa May, the UK prime minister, on Tuesday announced her intention to seek an early general election for June 8, but the move that will allow her to solidify her Brexit mandate has had no major impact on market volatility.

A leading London derivatives lawyer last week told an audience of experts that he was confident in the future of credit derivatives, lauding the increasing “objectivity” of the International Swaps and Derivatives Association (ISDA) definitions and the more transparent nature of the market.

The European Securities and Markets Authority (ESMA) has clarified margin rules under the European Market Infrastructure Regulation (EMIR) in a new document, outlining the situations in which central counterparties (CCPs) may allow up to 100% collateral reductions for derivatives contracts.

Volume figures released by most of the major derivative exchanges for the month of March showed increased activity, with interest rate products swelling volumes.

The Intercontinental Exchange (ICE) has introduced clearing on credit default swaps for US and European financial stocks.