Derivs - FX

The share prices of trading platforms took a hit on Monday morning after the European Securities Markets Authority said it might crack down on binary options and contracts for difference traded by retail investors.

The end of pension scheme arrangements’ (PSAs) clearing exemption is approaching, but European Union institutions and market participants are still forcefully debating whether to grant another rollover — and what a permanent solution will look like.

The Singapore Exchange has increased the fees for its derivatives service for the first time in 15 years, leaving some members facing increases of many times what they were paying before.

LCH has added more Australian dollar lines to its clearing business in the market, including Australian dollar bank bill reference rate (BBSW) against Aonia overnight basis swaps in its product range.

Crédit Agricole has added to the momentum in systematic internaliser sign up, joining other banks in registering as one well ahead of a 2018 deadline.

Once again, regulators have kept European derivatives players on edge until the last minute, this month over the expected exemption of physically settled FX forwards from variation margin requirements. They need a break.

European regulators have signalled their intention to grant non-institutions reprieve from variation margin requirements but with the clock ticking on the rule’s January 3 implementation date, those gunning for the exemption are still being kept on tenterhooks.

LCH SwapAgent, the non-cleared derivatives calculation agent arm of the clearing house, has processed its first cross-currency basis swap, a trade between Deutsche Bank and Credit Suisse.

Discussions between European member states over the supervision of foreign clearing houses have prompted potential changes to European Commission legislation that would strengthen the role of central banks and the ESRB, according to a leaked document seen by GlobalCapital.

The Bank of England’s Financial Policy Committee on Tuesday called for UK and EU legislation to guarantee cross-border derivatives contracts, estimating that £26tr worth of uncleared derivatives could be affected by the fallout of Brexit.

Moscow Exchange (MOEX) on Monday expressed its intention to be recognised as a third-country trading venue under the Markets in Financial Instruments Directive II (MiFID II), listing some of the steps it has taken to become compliant.

European finance ministers are unlikely to reach a deal on clearing house (CCP) resolution when they meet on December 5, despite commitment from Estonia — which chairs the debate — to close an agreement by year's end.