Derivs - Interest Rate

Klaus Löber has been selected by the European Securities and Markets Authority as chair of its CCP supervisory committee. ESMA has also picked two other members; all three will be assessed by the European Parliament.

The euro/dollar cross-currency basis swap has moved back in favour of euro issuance for the first time in three months, but with a wall of euro supply looming, the favourable level may not be enough to entice issuers away from the dollar market.

US corporates under stress from Covid-19 economic shocks, especially those in the real estate sector, have been struggling in their renegotiations of loan and swap agreements as power has flowed back to the banks, writes Ross Lancaster.

Some of the world’s top-tier financial institutions want changes in how central counterparty clearing house (CCP) resolutions are executed.

A decision by the US Commodity Futures Trading Commission (CFTC) last week regarding European Union multilateral trading facilities (MTFs) and organised trading facilities (OTFs) could be a glum preview of the UK’s cross-border regulatory affairs.

Just 3% of dollar interest rate risk was executed with Sofr trades in June, and the Japanese Libor transition has also been sluggish, according to data released this week.

Despite the success of many emerging market sovereigns in issuing bonds in international markets this year, Turkey, typically a leading issuer, has been notable by its absence. And with its foreign exchange reserves running lower, the risks of it not being able to come to market at all could be mounting.

The US Commodity Futures Trading Commission (CFTC) was set to back a significant revision of its cross-border mandate on Thursday, pulling back from overseeing non-US swap transactions.

Central counterparty clearing houses (CCPs) could face increased attention and greater regulation after coming through the Covid-19 crisis in good shape, Fitch Ratings analysts said this week.

Favourable moves in the cross-currency basis swap and rates markets have created opportunities for European investors to play in the US fixed income markets, said Amundi investors this week.

RJ O’Brien, the futures brokerage and FCM, is aiming to break into the dollar swap market by hiring rates veteran Mark Donlon.

GlobalCapital is pleased to announce the winners of this year’s Americas Derivatives Awards. This year’s pitching process was one like no other as the Covid-19 crisis swept throughout the world.