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Options on futures markets are seeing rapid growth in trading volumes as investors expand their use of these instruments in hedging and volatility strategies.
This is especially so as investors have anticipated changes in the winding down of the US Federal Reserve’s quantitative easing (QE) programme, generating strong growth in interest rate derivatives markets.
According to new research from TABB, “Options on Futures: A Market Primed for Further Expansion,” options on futures trading volume is expected to remain strong in 2014, growing 15 per cent, as fiscal policy shifts and increased volatility drive market activity.
“Leveraging growing liquidity,
Deutsche Asset & Wealth Management's (DeAWM) Aggregator Solutions fund has recently acquired a USD85m portfolio of illiquid hedge funds from a Swiss asset manager.
The fund closed in August 2013 with commitments from professional investors of USD1bn.
The Aggregator Solutions fund has now either acquired or had bids accepted on positions with a net asset value of more than USD400m from professional investors since it launched in October 2012. The fund was set up to invest in illiquid or lower-liquidity hedge funds, particularly in situations where market conditions make it difficult for investors to redeem their holdings.
Magnus
The Swiss banking group Syz & Co has launched Oyster Market Neutral Plus, a new sub-fund of Oyster, its Luxembourg UCITS SICAV.
The fund is an increased leverage version of the Oyster Market Neutral fund, whose neutral beta long/short strategy has proved itself since it was launched four years ago.
Managed by Syz Asset Management according to the same investment process and with the same diversification and non-correlation objectives as the original fund, Oyster Market Neutral Plus offers 2x leverage and targets a return of LIBOR +10 per cent.
With a target return of Libor +10 per cent
The CFTC has announced that Bloomberg SEF’s available-to-trade determinations (MAT determinations) for certain interest rate swap (IRS) and credit default swap (CDS) contracts are now self-certified.
This self-certification involves only certain IRS and CDS contracts made available to trade via earlier determinations that were self-certified on 16 January, 22 January and 27 January 2014, respectively.
These determinations became effective on 15 February, 21 February and 26 February 2014 meaning that the CDS contracts and IRS contracts in this MAT determination, whether listed or offered by Bloomberg or any other SEF or designated contract market (DCM), are subject to the
The push toward an exchange-traded derivatives (ETDs) market has exposed gaps in the post-trade process used by market participants to clear and settle these transactions.
That is according to a study from Greenwich Associates, sponsored by Omgeo, which says that recognising the need for greater efficiency in post-trade process, derivatives market participants are prepared to make investments to handle increased trade volumes.
In the report, Cleared Derivatives Processing: A Strategic Approach, Greenwich Associates spoke with over 50 buy-side operations professionals and found that trade confirmations in ETDs remain a largely manual process for institutional investors.
Despite the growing
Law firm Dechert has appointed Mark Browne as a partner with the firm’s financial services group in its Dublin office.
“We are delighted to have Mark join us,” says Peter Astleford, Dechert’s global financial services group co-chair. “Mark’s experience, dynamism and deep knowledge of the Irish and international investment funds sector will be an important addition to our expanding local and global capability. His experience in advising US, UK and international asset managers on their Dublin-based fund projects, combined with his offshore experience, will be invaluable in meeting the needs of our clients and adding to our capability to advise
Leaders of the US Commodity Futures Trading Commission (CFTC) and the Financial Services Agency of Japan (JFSA) have signed a memorandum of cooperation (MOC) regarding the supervision and oversight of regulated entities that operate on a cross-border basis in the US and Japan.
Through the MOC, the CFTC and JFSA express their willingness to cooperate with each other in the interest of fulfilling their respective regulatory mandates regarding derivatives markets.
The scope of the MOC includes markets and organised trading platforms, central counterparties, trade repositories, and intermediaries, dealers, and other market participants.
The MOC was signed by CFTC
Institutional investors are predicting increased rates of growth in hedge fund assets in 2014, according to the Credit Suisse’s sixth annual Hedge Fund Investor Survey.
“Onwards and Upwards”, which presents the views of some 500 respondents representing USD1.16trn of hedge fund investments, analyses a number of topics including growth and return prospects for the industry; strategy preference and allocations plans; and appetite for day one Investments and new launches.
Robert Leonard, managing director and global head of capital services at Credit Suisse, says: “Institutional investors predicted hedge fund industry assets under management to grow even faster this year by
The number of exchange-traded derivatives (ETD) worldwide increased by three per cent in 2013 to 22 billion contracts, according to statistics compiled by the World Federation of Exchanges (WFE).
The WFE, which annually conducts a survey on derivative markets, found that in 2013, 22 billion derivative contracts (12 billion futures and 10 billion options) were traded on exchanges worldwide – a 685 million increase above derivatives contracts traded in 2012.
The drop in equity derivatives (-5.3 per cent) is mainly explained by the size changing of the KRX (Korea Exchange) KOSPI 200 contracts, the weight of which is very
Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo and BBVA are developing an asset servicing model for a market environment with TARGET2-Securities (T2S).
Clearstream will connect via its central securities depository to the T2S platform, hence attracting settlement flows, while the custodian bank partners will handle asset servicing at a domestic market level, bringing the company’s local market expertise to the model.
Target markets via these partners are Belgium, France and the Netherlands (with BNP Paribas Securities Services), Italy (with Intesa Sanpaolo) and Spain (with BBVA).
Development work is in progress with the aim for T2S readiness once Clearstream
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