Solutions
Mitsubishi UFJ Securities International is now clearing its interest rate swap business through LCH.Clearnet’s interest rate swap clearing service, SwapClear.
With a total value of USD347trn, interest rate swaps continued to be the largest part of the OTC derivatives market in the first half of 2010.
Kirsty Brown, head of business development and strategy at MUSI, says: “Increased regulation and scrutiny mean reducing risk in the fast-growing OTC market is a substantial challenge. LCH.Clearnet is the industry standard in clearing and counterparty services and our partnership confirms MUSI’s commitment to offering the best possible protection from risk.”
Michael Davie, chief
The Signet Group, a specialist in absolute return multi-manager investments, has reached an agreement with Wilshire Funds Management, a business unit of Wilshire Associates, to provide an enhanced transparency absolute return portfolio management service to its institutional clients.
Wilshire Funds Management will leverage its existing funds platform and accompanying tools to provide transparent due diligence and risk monitoring support for multi-manager absolute return investment portfolios managed/advised by Signet.
This will include: portfolio risk analysis based on position-level information collected from all underlying funds; measurement and aggregation of portfolio exposures to various risk factors; and investment guidelines compliance at individual manager
At the derivatives markets of Eurex, an average daily volume of 10.2 million contracts was traded in November, up from 9.4 million in November 2009.
Thereof, 7.2 million contracts were traded at Eurex (November 2009: 6.3 million) and 3.0 million contracts were traded at the International Securities Exchange (November 2009: 3.1 million).
In total, 221.7 million contracts were traded on both exchanges (November 2009: 193.0 million); thereof, 159.0 million contracts at Eurex and 62.7 million contracts at ISE.
At Eurex, the equity index derivatives segment was the most active segment, totaling 71.2 million contracts (November 2009: 64.0 million). Futures
Eurex Clearing has launched its Advanced Risk Protection solution, which enables clearing and non-clearing members to control their trading and operational risks by setting pre-trade limits on aggregate risk metrics such as the total margin requirement.
All members can define the level of protection for themselves, and clearing members are able to set limits for their non-clearing members.
Up to three staggered limits are activated when the pre-defined risk metrics are breached.
The risk checks are performed in real-time based on actual positions using real-time market prices.
“A reactive risk management approach is not sufficient to cope with the increasing
The Greenwich Composite Investable Index gained 1.21 per cent in October as equity markets continued their push higher on solid corporate earnings and anticipation of quantitative easing.
All of the Greenwich investable indices moved higher on the month, with funds focusing on directional trading strategies exhibiting the best results.
The Greenwich Futures Investable Index was the best performer for the month, gaining 2.73 per cent, putting its year-to-date return at over six per cent.
The Greenwich Long-Short Investable Index advanced likewise, netting 1.22 per cent as managers increased long positions.
Laggards on the month were more market neutral strategies, such
As of 26 November Eurex Clearing customers participating in the GC Pooling trading at Eurex Repo will be in a position to re-use GC Pooling collateral to fulfil their overall Eurex Clearing margin obligations.
Eurex Clearing members can make use of the new offering via their existing infrastructure.
The Eurex Clearing member only has to set an exposure amount while the allocation of the individual collateral securities will be managed by Clearstream’s collateral management system Xemac up to the defined exposure amount.
Thomas Book, member of the executive board of Eurex, says: “Eurex Clearing members now have an additional option
Digital Vega has launched its FX option trading platform Medusa, which allows market participants to trade a range of FX option structures on prices from up to five relationship-based liquidity providers.
The first transactions were undertaken by Pareto Investment Management, a currency risk manager which is part of BNY Mellon Asset Management.
Medusa provides intuitive trading functionality via a simple GUI, which can operate in any browser or via API. Pricing is available in either premium or volatility terms, with or without delta hedge with real-time execution and confirmation.
The platform delivers reporting tools to both buy- and sell-side participants,
Eurex will launch single stock futures on leading Canadian companies on 25 November 2010.
The new listings reflect customer demand for expanded offerings in the rapidly growing equity derivatives segment.
The futures contracts will be based on shares of Bank of Montreal, BCE, Canadian Imperial Bank of Commerce and Sun Life Financial.
“Single stock futures have quickly become one of our fastest growing product segments. The contracts give customers greater flexibility in executing trading strategies in more than 750 names in Europe and internationally. The new Canadian listings will provide members with further trading opportunities in the North American market,”
Derivatives exchange Eurex says November has become the most successful month for the Eurex Kospi Product based on the Kospi 200 options available on the Korea Exchange with a record daily volume of 14,636 on 4 November.
The total number of traded contracts since their launch on 30 August 2010 is more than 87,000.
Volumes are expected to rise as KRX and Eurex further develop the after-hours market for the derivatives contract.
In addition to improved bid ask spreads in the order book, one driver of recent volume growth has been the use of Eurex’s block trading functionality.
In order
NYSE Euronext’s wholly owned subsidiary NYSE Technologies plans to launch a consolidated tape for European equity markets beginning in quarter three 2011.
The tape will be available both as a real-time consolidated data feed and as a 15-minute delayed “Tape of Record”.
The Tape of Record will be free of charge to all investors and will be made broadly available via both the internet and market data vendors.
The consolidated tape will contain complete coverage of post-trade equities data from all European regulated exchanges, MTFs, and OTC markets.
NYSE Technologies will invite other markets to partner in providing consolidated
