Derivatives

Senate bill raises the stakes in financial reform debate

The future of the derivatives market in the US has become the subject of a political tug-of-war, after the Senate Committee on Agriculture, Nutrition and Forestry passed a bill prohibiting federal support to all dealers, derivatives exchanges, clearers…

Confusion over CVA

Dealers are becoming more disciplined in pricing credit – a lesson learned the hard way after the collapse of Lehman Brothers. However, banks are taking a variety of approaches, and some participants believe certain firms are habitually underpricing…

Dampening pro-cyclicality in margin

The Committee on the Global Financial System has released a proposal recommending changes to dampen pro-cyclicality in margin practices and haircuts for securities financing and over-the-counter derivatives. How could this affect collateral management…

Asian insurers hedge away solvency fears

Asian insurance companies have sat up and paid attention to their solvency ratios during the past two years like never before. This has led to unprecedented levels of derivatives take-up. But will this conversion to derivatives last? Harry Thompson…

Murky rules mire ODIs

Foreign institutional investors have clashed with the Securities and Exchange Board of India in recent years over the issuance of offshore derivatives instruments. Barclays Capital and Société Générale are the latest institutions to run foul of the…

Q&A with JP Morgan’s head of commodities for India

Indian businesses are keen to learn how to recognise their exposures to commodity price volatility and, in turn, manage that risk, says JP Morgan’s Rahul Eapen. He tells Katie Holliday why the varying levels of knowledge and understanding make the Indian…

Risk corporate survey 2010

Price is still the most important factor for corporates when choosing which dealer to trade with. However, a wide divergence in pricing among banks means transparency is now a key issue. By Matt Cameron, with additional research by Alexander Campbell,…

Protect to survive

The Lehman minibond scandal put Hong Kong firmly in the spotlight, with television images of protesting investors beamed across the world. In response, the Securities and Futures Commission (SFC) is making changes to investor protection rules. Martin…

ETF Securities launches commodity index tracker fund

Exchange-traded funds (ETFs) and currency specialist ETF Securities has launched the first ETF to track the Dow Jones-UBS Commodity Three-Month Forward Index (DJ-UBSCI F3(SM)), following growing investor demand for diversified commodity related products.

S&P to launch commodity sub-indexes amid US regulation fears

Ratings agency and financial research firm Standard & Poor’s (S&P) is to roll out two commodity-related sub-indexes that focus only on European and Asian contracts in response to fears the US Commodity Futures Trading Commission (CFTC) will make further…

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