Derivs - Equity

Klaus Löber has been selected by the European Securities and Markets Authority as chair of its CCP supervisory committee. ESMA has also picked two other members; all three will be assessed by the European Parliament.

The use of exchange-traded funds labelled as addressing environmental, social and governance themes is rising rapidly, as investors believe they allow them to track ESG indices more easily and cheaply, without necessarily having to engage intensively with ESG matters.

Investors are doubtful whether the extraordinary stock market rally of the last few months will continue, as they await news of a vaccine, further economic fallout from the pandemic, and the result of the US presidential election. If they want to maintain equity exposure while limiting potential losses, UBS analysts have suggested using call options for certain indices.

FTSE Russell and Singapore Exchange (SGX) have teamed up to offer investors a range of products across asset classes. It follows the termination of an agreement between SGX and MSCI.

UBS reckons it has a hit upon a ‘unique formula’ for growth as it expands its investment banking offering to its high net worth clients, writes David Rothnie.

VOLQ futures, a contract based on the Nasdaq 100 volatility index, is set to be available in time for investors to hedge potential volatility as a result of the US presidential election. Tim McCourt, global head of equity index and alternative investments at CME Group — which is launching the product — said that investors could use VOLQ in conjunction with the VIX, run by rival CBOE Global Markets.

CME Group is making a play for the volatility derivatives market. On Thursday it announced a new futures contract that will reference the Nasdaq 100 volatility index.

Singapore Exchange (SGX) revealed a new suite of Asian equity derivatives this week, as it gave investors a look at what its strategy after winding down its high profile licensing agreement with MSCI will be.

Société Générale and Natixis have purged their senior ranks following second-quarter losses and to prepare for strategic revamps, but David Rothnie thinks the future will remain challenging for both.

Financial firms’ relentless push to boost their data offerings received a check this week with the release of an industry survey that indicates a decline in market data spending for 2021.

Some of the world’s top-tier financial institutions want changes in how central counterparty clearing house (CCP) resolutions are executed.

Investors appeared positive on Natixis's prospects after Nicolas Namias replaced François Riahi as chief executive. Meanwhile, the bank has said it will reposition its equities division after it endured another tough quarter.