Derivs - FX

Capitalab, part of BGC Partners, has extended the compression service it operates to FX options as well as interest rate caps and floors.

GTX, the institutional foreign exchange trading arm of GAIN Capital, has named a chief executive of its swaps execution facility.

The Chicago Mercantile Exchange has introduced a new method of trading six FX option products, by using volatility-quoted prices.

Bizarre trading dynamics conspired to save over-confident trades backing a Hillary Clinton victory in the US presidential election, with a ‘Trump bounce’ in the aftermath curtailing volatility and sending many short-volatility plays back into the money. But the shock of the Republican victory adds to that of the Brexit vote in June and has jolted market complacency on other political events in the coming months.

Donald Trump’s shock US election victory in the early hours of Wednesday caused a shockwave to course through derivative markets overnight. But by midday in London traders said the overall reaction was much more orderly than in the aftermath of the UK vote in June to leave the European Union - and by close of business some markets had made full scale retrenchment.

Long-languished plans to centrally clear foreign exchange derivatives have been jump-started back to life, claimed dealers who are optimistic that a cleared FX options contract could be available to trade within the coming months and pave the way for further progress in the asset class.

A shift of momentum in the US presidential race has sent tremors through derivatives markets this week, with equity implied volatility ramping up, credit index spreads widening and the Mexican peso slumping against the dollar.

The US Commodity Futures Trading Commission has given permission, via orders of registration, for five European exchanges to allow direct trading access from the US.

Tullett Prebon Information has signed a deal with digital currency and asset news, data and resource provider Brave New Coin to distribute intraday pricing to TPI’s customers for 50 digital currencies.

Hong Kong Exchanges and Clearing will introduce a ‘volatility control mechanism’ next month for its derivatives market in a bid to stop trading errors and other incidents causing extreme price volatility.

CME Group is set to introduce six currency futures on its European exchange, taking the number of crosses it has available to 36.

Political wrangling on both sides of the Atlantic this week produced contrasting fortunes for two currencies in futures markets, with the Mexican peso receiving a boost and the British pound slumping to some of its worst ever levels against the US dollar.