News
DrKW’s Piranha bites into online options services
Dresdner Kleinwort Wasserstein (DrKW), the investment banking arm of Dresdner Bank, has added an options service to its Piranha online foreign exchange trading system.
Merrill Lynch snares Goldman derivatives ace Covin
Merrill Lynch has poached David Covin from Goldman Sachs to develop interest rates products in its strategic solutions group (SSG) - a unit split into interest rates and credit divisions that specialises in structuring derivatives products for investment…
Flawed risk management forces Abbey chief Harley to quit
Ian Harley, chief executive of British retail bank Abbey National, was forced to resign today following months of speculation about his future, after the bank unveiled large losses due to poor risk management in its wholesale banking unit.
Japan Credit Market Update: Spreads track US and Europe wider
Japanese credit default swap spreads were wider this week, tracking the trends in the US and Europe in a generally bear market, traders said.
Credit Markets Update: European spreads contract in thin trading
European credit default swaps spreads have tightened following the release of better-than-expected results from several high-profile companies and improved sentiment in the telecoms sector. But liquidity was low, traders said.
Deutsche Bank launches US mortgage total return swap
Deutsche Bank is offering a total return swap product based on its US Mortgage TBA index. The index is calculated using the 30 most liquid mortgage-backed securities (MBS) offered by US government-sponsored mortgage finance agencies Fannie Mae, Freddie…
French securitisation ruling likely to be delayed further
The French banking regulator ruling to change the capital risk weighting system on securitisations continues to cause confusion, with market commentators stating that a final decision may be delayed until September.
FIA issues best-practice error trade recommendations
The Futures Industry Association (FIA) has released recommendations regarding the adoption of error trade procedures on derivatives exchanges, following a year-long special review committee investigation into the matter with principal international…
PNC forced to improve risk management
The PNC Financial Services Group has agreed to bolster its risk management capabilities, following an enquiry by the US Securities and Exchange Commission (SEC) into some off-balance-sheet trades with American International Group (AIG) in 2001.
City Networks names new chief executive
City Networks, a London-based software and services provider for the treasury and derivatives markets, has named Costa Christodoulou as its new chief executive.
Basel II principles can fit insurers, UK regulator says
The principles of risk-based regulation embodied in the Basel II bank pact can be applied successfully to insurance companies, the UK’s chief financial regulator said today.
Banks will get Basel II survey spreadsheets tomorrow
Some 300 banks in 36 countries will tomorrow receive draft spreadsheets and an information pack relating to the crucial QIS 3 survey for the complex Basel II bank capital Accord, global banking regulators said today.
FSA fairly confident of ‘sensible’ op risk charge for investment firms
UK regulators are reasonably confident operational risk capital charges for investment firms proposed under new European Union (EU) rules will be “sensible”, the UK’s chief financial regulator said today.
Expensing share options could mean more hedging, say analysts
Hedging employee share options could become more common if companies follow Coca-Cola’s example and expense them, according to equity analysts.
Banks see sharp slowdown in equity derivatives business
Falling equity derivatives revenues have hit bank earnings in the second quarter this year, as a decline in merger and acquisitions (M&A) activity saw less corporate demand for equity derivatives.
London's gilt repo market set for liquidity increase, says LCH
Liquidity in the UK gilt repo market should increase dramatically next month, when the London Clearing House (LCH) steps in as central counterparty, according to John Burke, director of LCH's RepoClear service.
WestLB to adopt Citigroup FX settlement service
Germany's WestLB has subscribed to Citigroup’s e-business CLS (continuous-linked settlement) settlement services for foreign exchange settlement. The deal will allow WestLB to offer CLS settlement services to its German savings bank and Landesbank…
Globex glitch grounds CME's Eagle platform
The maiden flight of the Chicago Mercantile Exchange's (CME) Eagle (electronic arbitrage Globex liquidity enhancer) platform has been delayed until October due to problems with Globex, the CME's electronic trading platform, which supports Eagle.
FSA fairly confident of ‘sensible’ op risk charge for investment firms
UK regulators are reasonably confident operational risk capital charges for investment firms proposed under new European Union (EU) rules will be “sensible”, the UK’s chief financial regulator said today.
Banks will get Basel II survey spreadsheets tomorrow
Some 300 banks in 36 countries will tomorrow receive draft spreadsheets and an information pack relating to the crucial QIS 3 survey for the complex Basel II bank capital Accord, global banking regulators said today.
Weather derivatives to buck energy trading downturn, says report
Weather derivatives have a promising future, despite troubles in the energy merchants sector, according to a report by New York-based energy consultancy RJ Rudden Associates.
SuperDerivatives to introduce equity derivatives pricing system
SuperDerivatives, a London-based company offering pricing systems for currency options, has said it is planning to expand its business by launching an equity derivatives pricing system. It said an accepted market price for equity derivatives dealers…
Basel II principles can fit insurers, UK regulator says
The principles of risk-based regulation embodied in the Basel II bank pact can be applied successfully to insurance companies, the UK’s chief financial regulator said today.
UK investor fears seem overdone, regulator says
It is right that regulators look hard at the UK’s regulatory regime to see whether improvements are needed to prevent a fraudulent attempt to inflate corporate earnings for personal gain, the UK’s chief financial regulator said today.