Derivs - FX

The European Securities and Markets Authority (ESMA) has launched a consultation on the rules surrounding penalties for third-country central counterparties (TC-CCPs), trade repositories (TRs) and credit rating agencies (CRAs).

Nerves in the foreign exchange market had been tense in the run-up to Thursday night’s UK election, with a rumour that Labour would win more seats than predicted sparking some volatility in the FX options market. But that was swiftly quashed when TV broadcasters’ exit poll showed a Conservative majority and brought volatility to a swift halt.

A fuse has been lit on renewables hedging. In offshore wind alone, a wall of investment is set to hit the industry over the next two decades, one that will take many project sponsors into cross-border investments. Those prospects are already deepening hedging markets, writes Ross Lancaster

As European Union regulators start to review the Markets in Financial Instruments Directive, some market participants are nervous that Germany will use the opportunity to stamp out their own ambitions for open access to clearing houses.

RBC Investor & Treasury Services has launched a new collateral management service to help asset managers comply with non-cleared derivatives rules.

A surge in sterling this week has been accompanied by increased demand for FX put options, as investors take the view that there is little upside left ahead of the UK election next week.

Firms are continuing to struggle with reporting quality and processes around MiFID II compliance, according to a new survey.

The Conservative Party’s lead in the opinion polls is giving rise to expectations that risk assets will rally, Gilts will sell off and primary markets will remain open after the UK general election on December 12. But a victory for Jeremy Corbyn’s Labour Party would cause panic.

The European Securities and Markets Authority has appointed Robert Ophèle as acting chair of its central counterparty supervisory committee.

Christopher Giancarlo, former chairman of the US Commodity Futures Trading Commission (CFTC), will return to the private sector in his first job since leaving the regulator.

The UK Financial Conduct Authority (FCA) has started a consultation on how it should apply the Senior Managers Regime (SMR) to benchmark administrators.

Finbarr Hutcheson, president of ICE Clear Europe, will leave the company in March next year, as the exchange and clearing operator begins the search for his replacement.