Foreign exchange
CME and Citadel plan CDS exchange
Chicago-based exchange operator CME Group and hedge fund management firm Citadel Investment Group are set to launch a fully integrated trading and clearing platform for credit default swaps (CDSs).
Rate cut not meant for financial markets, central banks say
Central banks around the world cut interest rates in the latest attempt to shore up the weakening economy today.
UK government unveils £50 billion bank recapitalisation plan
The UK government this morning announced a jumbo rescue package to recapitalise the country’s ailing banking sector.
Minibond trustee in Singapore searches for new swap counterparty
Singapore investors, which bought Lehman Minibonds, have requested the trustee of the products to consider all proposals for a new swap counterparty to replace Lehman Brothers for all series of the Minibond programme. The request came after the trustee,…
G30: regulation struggling to keep pace with modern finance
Financial regulation in many countries has been unable to cope with the speed of change in the financial services industry over recent decades, according to a report released on October 6 by the Group of Thirty (G30).
TriOptima reconciling 50% of collateralised OTC derivatives
Swedish technology company TriOptima’s portfolio reconciliation service, TriResolve, now reconciles more than 50% of all collateralised over-the-counter (OTC) derivatives transactions globally, up from 40% in June.
Federal Reserve to buy commercial paper from US banks
The US Federal Reserve has launched a new facility to purchase commercial paper from approved issuers in a further effort to provide liquidity to stricken bank funding markets.
Fed to treble lending
The Federal Reserve increased its Term Auction Facility (TAF) auctions by $300 billion on Monday, and expects its lending to reach $900 billion by November; three times the amount of liquidity provision given to date.
Auction determines settlement price for Fannie and Freddie
An auction to determine settlement prices on credit derivatives referencing Fannie Mae and Freddie Mac took place yesterday, making it by far the largest credit event fixing to have taken place since the process was first introduced in 2005.
IMF estimates crisis losses at $1.4 trillion
The International Monetary Fund (IMF) on October 7 increased its estimate of losses on US-originated housing loans and associated securitisation products to $1.4 trillion from $945 billion.
G-30 speaks out on structure of financial supervision
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US agrees $700 billion bail-out
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Germany does not guarantee savings accounts
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SSVP names new vice president as membership extended to buy-side
The Swiss Structured Products Association (SSVP) has named a new vice president following the retirement of the previous VP. Professor Dr. Paolo Vanini, who is a physicist, was elected to the role to replace Peter Scot at the association’s annual general…
Bailouts fail to lift markets
The news of massive bank bailouts on both sides of the Atlantic failed to support the stock markets this morning - UK and European equities fell sharply in early trading, led by a weak financial sector.
Hypo Real recieves €50 billion bailout
The German government, along with Deutsche Bundesbank, financial regulator BaFin and a number of German banking and insurance representatives, has agreed on a €50 billion rescue package for property lender Hypo Real Estate after an earlier bailout…
Fear of tail risk drives new derivative product
A new derivative product will allow buyers and sellers to take levered positions on equity and exchange-traded funds without worrying about tail risk, its designer says.
Greece guarantees deposits: Sarkozy proposes EU bail-out
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SEC extends short selling ban
The US Securities and Exchange Commission (SEC) has extended its ban on the short selling of financial stocks to October 17, in order to give the US Congress time to vote through measures aimed at stabilising the financial markets.
UBS exits commodities
Investment bank UBS has announced today that it will end its trading operations in the commodity markets, except precious metals.
Bank of England extends eligible collateral for repo facility
The Bank of England (BoE) on Friday extended the range of collateral eligible for its weekly sterling three-month repo facility to include AAA-rated asset backed securities (ABSs) of corporate and consumer loans and highly rated asset-backed commercial…
Greece follows Ireland's lead in savings guarantees
Greek finance minister Giorgos Alogoskoufis said yesterday the Greek government would guarantee its citizens' savings, following the decision of the Irish government to do the same earlier this week.
Bloxham offers financials with Irish government guarantee
Bloxham Asset Management, an independent investment services firm, has launched a new deposit product for Irish investors which exposes them to potential financial stock recovery. The product launch comes as the Irish government announced on Tuesday that…
CDS spreads widen despite bailout approval
Credit default swaps (CDSs) on a number of major dealers widened yesterday in spite of the US Senate vote on a revised $700 billion financial rescue plan.