Derivs - Interest Rate

A weighty corporate hedging transaction has added to the momentum of the US rates market’s transition from Libor. JP Morgan executed a $500m swap referencing Sofr with a blue chip corporate, Unilever.

Interdealer broking giant TP ICAP has advanced further into buy-side revenue streams, with specific plans to target fixed income markets, as it clinched its acquisition of trading platform provider Liquidnet for an initial $575m last Friday.

The International Swaps and Derivatives Association this week signalled its ambitions to unify documents for derivatives, securities financing transactions and repo markets.

TP ICAP is pushing for a slice of buy-side business as it revealed on Tuesday night that it is in advanced discussions to buy Liquidnet, the trading platform provider.

Fannie Mae’s and Freddie Mac’s drive to buy floating rate loans that reference the secured overnight financing rate is charging up a nascent market in interest rate caps that reference the Libor replacement.

Tradeweb is the winner of this GlobalCapital’s OTC trading venue of the year award in what has been an extraordinary time for electronic trading. During the stressed market conditions of spring, Tradeweb stayed committed to innovating and creating efficiencies for its clients, which made it a clear winner of this category. While this award recognises Tradeweb’s achievements in derivatives, its presence in Treasuries, mortgages and exchange traded fund markets should be noted too, especially as much of its recent work has focussed on creating efficiencies across these product lines.

GlobalCapital is delighted to announce the winners of its 2020 Global Derivatives Awards.

The European Commission on Tuesday gave the derivatives clearing industry a lifeline by granting an 18 month equivalence decision that will allow European firms to keep using UK central counterparties.

As political tensions rise over the UK-EU trade negotiations, concerns in the derivatives market are growing as the lack of equivalence between trading venues causes jitters once again.

The tension between the EU and UK over Brexit ratcheted up this week, with the prospect of the UK reneging on the EU-UK Withdrawal Agreement rearing up. Rising political tension could now boil over into talks on financial services.

TraditionDATA, the data and analytics arm of interdealer broker Tradition, is adding Ameribor, a potential replacement rate for Libor, to a data suite that shows spreads between alternative reference rates.

Traders across asset classes are beginning to position in size as the US presidential election approaches, with an expected tight run-off making it very hard to time the market.