News
Isda reports 75% increase in collateral use for derivatives trades
Collateral use in over-the-counter derivatives transactions and related margined activities such as repos and structured products increased 75% from $250 billion in 2001 to $437 billion this year, said the International Swaps and Derivatives Association…
Totem launches European power and gas valuation service
Totem Market Valuations, a UK-based provider of derivatives valuation services, has launched an over-the-counter European power and gas derivatives pricing service targeted at oil majors, merchant energy companies, banks and former state monopolies…
BIS opens representative office in Mexico
The Bank for International Settlements (BIS) has opened a representative office in Mexico City to serve as a centre for its activities in the Americas.
VAR “not to blame” for 1998 crisis, says leading academic
“There is no evidence to support the assertion that VAR-based risk management systems destabilise the financial system,” says University of California at Irvine professor Philippe Jorion, in a paper just published in the fall 2002 edition of The Journal…
Convergence Capital to launch first hedge fund
Convergence Capital, a newly formed hedge fund manager focused on Central and Eastern Europe and Russia, will go live with its first long/short equity fund Constar (Convergence strategic absolute return fund), in the next two to three weeks. The fund,…
BBH upgrades web platform for investors
US custodian Brown Brothers Harriman (BBH) went live with the upgrade of its web-based currency trading service FX WorldView last week, Brenda Kerins, head of FX e-commerce at BBH in New York told RiskNews' sister publication FX Week .
Abbey National signs up to Datasynapse's LiveCluster service
Abbey National Treasury Services has signed up for LiveCluster, a computer infrastructure software product developed by New York-based trading technology vendor DataSynapse. The UK bank will use the software to enhance the computation of its capital…
Riskmetrics aims for hedge funds
Peter Davies, recently appointed vice-chairman of New York-based risk management vendor Riskmetrics, has said the alternative investment industry - specifically hedge funds and funds of funds - is an area of focus for the company.
HSBC adds exotics derivatives trader
HSBC has hired Guillermo Gimenez as a senior exotic foreign exchange derivatives trader in London. Starting in late November, he will report to Frederic Boillereau, global head of exotic options trading.
First-half OTC derivatives volumes rise 15%
The value of over-the-counter derivatives notional outstandings grew to $128 trillion by June 30, up 15% from the figure at the end of last year, according to a study by the Bank for International Settlement (BIS). But much of the increase in the…
Client-driven credit default swaps business dries up in Japan
Trading volumes in Japanese credit default swaps were about one quarter of typical levels this week, with spreads tightening in a similar manner to that seen in Europe and the US.
Fisher lambasts US companies for hiding off-balance-sheet exposures
US undersecretary of the treasury Peter Fisher today launched an attack on companies that choose to use derivatives as a means of hiding total economic leverage from shareholders and creditors.
Basis trade opportunities decline as default market continues to tighten
The European default swap market continued to tighten substantially across certain sectors this week, correcting the recent dislocation between cash bonds and credit default swaps (CDS).
El Paso exits energy trading
US energy company El Paso announced plans to quit the energy trading business today as continued problems in the sector led it to post a third-quarter loss.
VAR “not to blame” for 1998 crisis, says leading academic
“There is no evidence to support the assertion that VAR-based risk management systems destabilise the financial system,” says University of California at Irvine professor Philippe Jorion, in a paper just published in the fall 2002 edition of The Journal…
Credit ratings come into FX focus
Credit ratings are becoming increasingly significant to foreign exchange market players, with downgrades increasing in the current economic downturn, market participants told RiskNews ' sister publication FX Week .
Europe allows wider role for op risk insurance in Cad 3
European banks and investment firms would be able to use operational risk insurance to reduce capital charges in all approaches to measuring op risk under new European Union (EU) capital adequacy rules.
UK’s Centrica signs five-year, £40 million weather hedge
British Gas Trading, a subsidiary of UK energy company Centrica, has concluded a £40 million weather hedge with Bermuda-based XL Capital. The multi-year deal may prove the largest in Europe this year.
Chinese, Vietnamese and Indonesian banks most risky in Asia
Banks domiciled in China, Indonesia and Vietnam are the most risky in Asia when it comes to economic and industry risk combined with problem assets, according to a 14-country study by rating agency Standard & Poor’s (S&P).
Europe allows wider role for op risk insurance in Cad 3
European banks and investment firms should be able to use operational risk insurance to reduce capital charges in all approaches to measuring op risk under new European Union (EU) capital adequacy rules.
Deutsche to roll out electronic bond platform in Thailand
Deutsche Bank’s global markets business unit plans to roll out its eCommerce bond and credit note trading platform in Thailand by the end of the month. Called ‘Autobahn’, the platform will trade Thai government bonds via Bloomberg terminals. The move…
GFI expands credit derivatives brokerage team in Asia
New York-based brokerage GFI Group is opening a Hong Kong desk to concentrate on non-Japanese Asian credit default swaps. The desk will serve Asian-based clients, adding to GFI’s existing credit derivative desks in Sydney, London and New York.
Spectron launches online weather trading
Energy market intermediary Spectron has launched an online platform for trading weather derivatives.
Chicago Board of Trade president Vitale resigns
David Vitale has resigned as president and chief executive of the Chicago Board of Trade (CBOT). Bernard Dan, an executive vice-president at the exchange who joined from Cargill Investor Services in 2001, where he was president and chief executive, will…