Infrastructure
CFTC urged to rethink rules that threaten cross-margining
In a world where central clearing and bilateral collateral posting are mandatory, margin efficiency will be a big draw, and one obvious way to achieve it is through cross-product margining. Unfortunately, it is difficult to achieve – and Commodity…
CME vows to expand NDF clearing by year-end
Expansion of the exchange’s nascent NDF clearing platform to include a broader range of NDFs is set to begin within weeks, according to Roger Rutherford
Eurobase debuts Evo single-bank platform
New single-bank platform will have enhanced user experience and the flexibility to trade asset classes other than just FX and money markets, officials at Eurobase tell FX Week
Spotlight on: Simon Jones, Citi
Citi's head of G-10 spot trading for North America and global head of foreign exchange electronic trading talks to Miriam Siers about the growth of the bank's e-trading capabilities in recent years, and how his team has navigated the recent period of…
Profile: CLS Bank's Bozian on regulatory co-ops and CCP settlement risk
Regulators are struggling to ensure they have oversight of over-the-counter market infrastructure without losing the benefits of centralisation. CLS Bank’s council of supervisors could be the precedent they follow. By Michael Watt
Banks continue to invest in FXPB, despite tough hiring climate
Widespread cost-saving initiatives and hiring freezes have led to a wave of high-profile redundancies in the foreign exchange market, but forex prime brokerage remains an area for investment because of the focus on clearing, say banks and recruitment…
Singapore Exchange preps FX clearing launch
SGX president says NDF clearing will begin shortly, following the successful launch of a clearing platform for interest rate swaps in November 2010
FX Week Asia: Options clearing on hold, prime brokers confirm
FX clearing will be restricted to non-deliverable forwards as US authorities discuss whether settlement risk can be properly managed for cleared FX options, according to speakers at the FX Week Asia conference in Singapore
Emerging markets focus to boost NDFs despite clearing costs
The growth of the non-deliverable forwards market will not be hit by impending clearing laws
Spotlight on: Tony Dalton, Bank of America Merrill Lynch
Bank of America Merrill Lynch’s global head of foreign exchange prime brokerage talks to Joel Clark about the growth of the bank’s FXPB offering since the 2009 merger and the challenges of preparing for clearing of FX options and non-deliverable forwards
Clearing of Chilean NDFs hampered by netting uncertainty
The Central Bank of Chile has the authority to stop financial institutions netting down their transactions, which participants fear might prevent central counterparties from being able to clear contracts denominated in the Chilean peso
Morgan Stanley multi-manager platform goes head-to-head with Deutsche and Citi
FX Gateway, launched this week, will leverage Morgan Stanley’s prime-brokerage and distribution capabilities and give institutional investors direct access to up to 20 currency managers
Buy-side firms await regulatory clarity
Many buy-side firms are still holding back on introducing systems and processes for central clearing – but time might be running out
LCH.Clearnet eyes November launch for NDF clearing
London-based CCP is set to launch clearing for NDFs in six currencies in mid-November, having shelved plans for options clearing while banks discuss settlement-related issues with regulators
Spotlight on: Jon Hitchon, Deutsche Bank
The newly promoted head of Deutsche Bank Markets Clearing talks to Farah Khalique about the bank’s cross-asset clearing business and how it will compete with the derivatives clearing offerings of other top-tier banks
Regulation will reshape FX liquidity, says Rule Financial
Uncertainty about regulatory changes could hurt liquidity in the first instance, but the advent of Sefs might cause trade volumes to rise, according to consultants
Electronic FX trading in Asia may switch to multi-dealer platforms
The Asian FX derivatives business is expanding rapidly, driven by increased participation from financial institutions and hedge funds. While single-dealer platforms have increased market share over the past few years, incoming regulation could force FX…
Academic opposition to FX exemption debated at Isda’s Europe conference
Speaking in London on September 20, Craig Pirrong supports the unpopular position of fellow academic Darrell Duffie that FX swaps and forwards should not necessarily be exempt from the mandatory clearing requirements of the Dodd-Frank Act, as recommended…
Spotlight on: Stewart Macbeth, DTCC
Following the selection of the Depository Trust & Clearing Corporation and Swift to develop a trade repository for the FX market, the DTCC’s general manager for the global repository business talks to Chiara Albanese about its preparations to launch the…
Lloyds rolls out Arena to compete in FX e-commerce
Launch of Arena platform comes after more than a year of development, which started in mid-2010 with the formation of a client advisory board to determine the key elements of the e-trading platform
SwapClear may assist OIS development
London-based clearing house might consider helping to build OIS markets in minor currencies, as it continues to move its interest rate swap portfolio to OIS discounting
Oanda continues to boost global presence with Japan operation
Oanda chief executive Michael Stumm attributes the decision to open operation in Japan to regulatory changes
Taking stock of 2011: Regulation and clearing
The Group of 20 meeting in September 2009 laid out a set of requirements on clearing, trading and reporting of OTC derivatives. Two years on, plenty of progress has been made – but a number of outstanding issues remain. By Chiara Albanese, Farah Khalique…
CME Chilean peso clearing service awaits first trade
The CME says FCMs are the reason for the delay in offering its clearing service of non-deliverable forwards in USD/Chilean peso