Derivs - Equity

The derivatives industry’s 2020 events calendar is even thinner, as the Futures Industry Association has cancelled its annual London event.

European short sellers were dealt another blow on Wednesday as the Autorité des Marchés Financiers (AMF) decided to extend its ban on short selling.

More hedge funds are looking into entering the market making industry, following in the footsteps of Citadel Securities.

US banks this week reported stellar returns from trading and underwriting in the first quarter, even as the bottom line was hit by gigantic writedowns and reserves for credit losses, as the economic and financial disruption from the coronavirus crisis took its toll.

US banks ramped up reserves for credit losses, expanded credit lines and enjoyed bumper trading and debt underwriting volumes in the first quarter, according to results released on Tuesday and Wednesday.

Reviews of key areas of legislation such as MiFID II, bank capital requirements and Solvency II have been pushed into the future, as the European Commission puts green and digital regulation first.

Prop trading firm DRW has selected OpenGamma, the regulatory technology provider, to manage derivatives margin in its treasury.

The derivatives industry had a surprisingly quick win late on Friday when the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) authorised a one-year extension to the final phases of initial margin (IM) regulation.

David White, formerly a sales head at CME-owned TriOptima, has joined his former boss Stuart Connolly at CloudMargin, the collateral management technology provider.

As the coronavirus eats into the global economy, most companies are putting their share buy-back programmes on hold — but there are exceptions. ContourGlobal, which generates power in emerging markets, has launched a new buy-back programme, while Philips is using an unusual derivative technique to adapt its plan to crisis conditions.

IG Group, best known for its online index trading and contract for difference franchise, has launched a prime brokerage service targeting smaller institutions such as start-up hedge funds and family offices.

A financial industry fightback against bans on short selling by some jurisdictions is picking up pace, as lobbyists argued against the restrictions this week.