Cross currency swaps
Documentation fears slow CNY FX derivatives growth
Foreign fund managers need clarity before market can take off, say banks
CLS and TriOptima compress $1 trillion in forwards and swaps
The combined effort to reduce the size of outstanding portfolios crosses the $1 trillion mark in just over one year
Banks seek to standardise cross-currency settlement dates
Talks under way to exchange principal amounts on IMM dates to allow for greater netting
FX contracts in OTC derivatives soar to record high
FX instruments, as a share of all over-the-counter derivatives, rise from 12% in 2013 to 16% this year
TriOptima and SwapClear include first client-cleared trades
Eighteen participants in compression cycle for Canadian dollar interest rate swaps, eliminating $1.05trn in notional principal
Covered interest parity anomaly signals trouble ahead if volatility picks up
Since the financial crisis, a persistent breakdown of covered interest parity signalled an anomaly in the market. Over the last two years the phenomenon has accentuated and policy-makers should not dismiss its meaning, warns the BIS
Dodgy discounts: DVA claims fly in cross-currency market
Funding benefits have helped bring down the cost of cross-currency swaps in the past couple of years, but as competition becomes increasingly cut-throat, traders claim their rivals are offering a dodgier discount – the own-credit effects of debit…
TriOptima completes first USD/KRW compression
Eleven institutions save $8.8 billion of notional
Industry grapples with uncleared margin rules
Market participants are unhappy with consultation documents released in the EU and the US on the margin requirements for FX swaps and forwards, and the definition of a financial end-user
European regulators slammed for uncleared margin ‘sleight of hand’
Possible expansion of firms affected by variation margining earns critique from buy side
Asian currency hedgers to be hit by ‘fatal flaw’ in new accounting rules
A major change is needed to correct new hedge accounting rules that could restrict derivatives use by Asian firms hedging their foreign currency exposures
ADB economist moots idea of common currency in Asia
Principal economist at Asian Development Bank says common currency possible in ‘long run’; panellists outline possibilities for greater Asian economic integration
China and Australia sign A$30bn currency swap
Australia joins the ranks of central banks with a bilateral currency swap line with China; reflects increased use of renminbi and closer trading ties between the countries
Australian regulators suggest clearing exemption for FX
Reserve Bank of Australia discussion paper commits to harmonising rules with US and Europe
Asian Financial Forum: Call for Chiang Mai upgrades, shorts control
Asian regulators note the risk of future market volatility due to fund outflows from the region or external global difficulties, and suggest that Chiang Mai and short selling are among topics that need attention.
Isda members to qualify as swap dealers, says Gensler
All 209 primary members of the International Swaps and Derivatives Association could fall under the definition of swap dealer if they intend to do business in the US, according to Gary Gensler, chairman of the US Commodity Futures Trading Commission …
CLS year-on-year volumes up in July
NEW YORK - CLS experienced a year-on-year rise in volumes settled over the system in July, but reported a decline from June, reflecting a drop in market volatility.
Global forex growth on the up
GLOBAL - Global foreign exchange growth increased this year from October 2009, as investor confidence in the FX market has returned following the global financial crisis, despite concerns over the eurozone.
Emeap: Cross-border collateral may alleviate dollar funding strains
Executives’ Meeting of East Asia-Pacific Central Banks says crisis revealed shortcomings in regional money markets; swaps deals, cross-border collateral could alleviate some problems
Spot activity levels up year-on-year in June
LONDON - Electronic brokers reported a marginal rise in trading activity in June versus the same period last year.
Real outpaces euro in exchange trading
BASEL - The Brazilian real outpaced the euro as the second most actively traded currency contract on exchanges, due to an under-developed over-the-counter market, according to the Bank for International Settlements.
Confusion over regulations continues
The new foreign exchange committee could not have come at a better time, with much confusion over the status of currency derivatives in Germany, following its government’s decision to backtrack on a proposed ban earlier last week.
Greek swap use may influence EU derivatives legislation
The clock is ticking for the EU to put its proposed regulation for over-the-counter derivatives on the table, but will Greece's controversial use of currency swaps mean even tougher rules on transparency? FX Week asked the Commissioner responsible for…
FX volumes bounced back in 2009
Foreign exchange daily trading volumes rise in 2009.