Cross currency swaps
First cross-currency swap cleared at Eurex
Morgan Stanley and JP Morgan first to use service and two more banks are onboarding as CCP hopes to extend offering to clients in 2020
Eurex to launch cross-currency swap clearing ‘within weeks’
Clearing service will target dealer-to-dealer trades before later rolling out to clients
Asia awaits term SOFR solution for local benchmarks
Singapore, Thailand and the Philippines look at ways to replace Libor in benchmark calculations
Dealers issue rallying cry for cross-currency benchmark reform
Global banks need to drive new standards for multi-rate swaps, say leading industry execs at Risk Live
LCH plans major FX clearing expansion
CCP to tackle cash-settled options, deliverable swaps and standalone service for deliverable forwards
BoJ prepares to link settlement system with Hong Kong
The connection will provide a new pathway for Japanese banks to obtain Hong Kong dollars and cut the exchange-rate cost
LCH SwapAgent processes first cross-currency basis swap
It is the first non-cleared trade to be transacted as LCH STM, SwapAgent’s settlement-to-market legal and operational framework
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.