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LCH.Clearnet Ltd (LCH.Clearnet) has cleared the first single expiry OTC coal options trades. Initial transactions have totalled 670 lots in API 2 options to date, across both quarterly and calendar tenures, reaching volumes of 2.46 million tonnes.
The use of thermal coal in power generation continues to increase in Asia, driving demand for coal option contracts which offer diversification to hedge funds, banks and physical market participants looking to manage price risk or gain exposure to price volatility. Clearing these contracts increases trading capacity and reduces concerns over counterparty risk, enabling further growth of the market. The API 2* and
Commodity markets continued to gain in March despite mixed global macroeconomic conditions. Prices were supported by increasing inflationary concerns, geo-political uncertainty and continued growth in export demand.
Nelson Louie (pictured), Global Head of Commodities at Credit Suisse Asset Management, says: "Economic concerns remained high due to uncertainty in the Middle East and the tragic events in Japan. Additionally, the US dollar continued to weaken over the course of the month, possibly due to concerns over the impacts of extraordinary loose monetary and fiscal policies, even amidst increasing signs that the US economy is on the road to recovery. The Federal
UBS has expanded its existing structured products capabilities by acquiring Luxembourg Financial Group (LFG), a structured products boutique and specialist asset manager, for a total consideration of EUR25 million. The transaction is expected to close in the second quarter of 2011 subject to all regulatory approvals.
Under the terms of the agreement, UBS has agreed to acquire 100 per cent of the shares of LFG Holdings S.A., the parent company. The LFG Group will form part of UBS’s Global Equities division within the Investment Bank and will be an important building block in achieving the division’s strategic aim of expanding
The US Commodity Futures Trading Commission (CFTC) has obtained USD615,000 in disgorgement and a civil monetary penalty in a federal court consent order against defendant Kuen Cheol Song, who resided in Singapore during the relevant time period, for engaging in an illegal, fictitious trading scheme. Song has never been registered with the CFTC.
The consent order, entered on April 11, 2011, 2011, by the Honorable Naomi Reice Buchwald of the US District Court for the Southern District of New York, requires Song to pay USD475,000 in disgorgement and a $140,000 civil monetary penalty. The order permanently bans Song from engaging
Citi Match, Citigroup’s broker crossing network, executed EUR22.8 billion worth of trades during Q1 2011, up 90% from EUR12 billion during the same period in 2010.
Citi Match was the largest dark pool in Europe during February, according to the most recent survey by Rosenblatt Securities Inc, an independent boutique that surveys dark pools on a monthly basis. Furthermore, during the first quarter of this year, the platform reported an average spread capture of more than 75%.
Rajesh Nagella, Managing Director and head of algorithmic products in EMEA says: “The continued growth of Citi Match provides the clients with access
Following on from our successful Hedgeweek 2011 global awards, which attracted a lot of votes from the US, we are conducting a survey of Hedgeweek’s US-based readership to assess the best US hedge fund performers and US service providers during 2010, in a range of categories covering the entire hedge fund space.
Managers and service providers are welcome to nominate their own funds/firms – with relevant justification. The response to previous surveys from our 56,000 readers has been significant, so send your nominations to us asap.
The results from this survey will be presented in aggregate and all individual answers
Bandon Capital Management has launched the Bandon Isolated Alpha Fixed Income Fund (BANIX), a global absolute return-oriented fixed income strategy. The fund, sub-advised by two highly regarded institutional specialist investment managers, is intended to be an “all season” strategy for investors seeking consistent returns through all market environments.
In the pursuit of its objectives the fund has the flexibility to invest in an unconstrained fashion across global fixed income securities and sectors including strategies that go both long and short in an attempt to capitalise on market opportunities in both directions.
The philosophy underlying the strategy is to incorporate
Skandia Investment Group (SIG) CIO James Millard explains that, despite the earthquake in Japan and rising oil prices, the company remains bullish on global equites…
We remain overweight global equities. The February Purchasing Managers’ Indices (PMIs) were very strong, suggesting that the global economy was growing very strongly in 2011 Q1. However, the earthquake in Japan and the rise in the oil price could turn what would have been a ‘great’ year for global growth into a ‘good’ one.
We think that the global equity rally that began in 2009 will continue, supported by the ongoing economic recovery, favourable
Johnson Har has joined Equity Trust’s office in Hong Kong, where he will be Regional Sales & Marketing Executive for Custom House, the fund services arm of the Equity Trust Group.
Johnson’s responsibilities will focus on promoting Custom House’s services in Hong Kong and China, as well as Client Relationship Management with select clients in the region.
Having been employed in the financial service sector since 2002, Johnson has held roles specialising in funds for the past four years. In 2007/08 he was an Investor Relations officer in the Alternative Fund Services department of HSBC’s Institutional Trust Service in Hong
Citi’s Global Transaction Services business has launched a comprehensive OTC Derivatives Service that consolidates and simplifies the entire post-trade execution process. The offering provides clients with access to a full range of middle- and back-office services on a single platform, including confirmation, settlement, valuation services, collateral management, margin management, and access to Citi’s global clearing network.
New regulations and oversight are transforming the OTC derivatives market, adding levels of operational complexity and reporting requirements across the contract lifecycle. The proposed offering addresses the need for a comprehensive OTC derivatives solution clients can use to navigate a rapidly changing regulatory and
