The surge in bond market volatility and trading volumes stemming from the prospect of rising interest rates, which JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called “scary,” has only just begun, based on shares of CME Group Inc.
The probe of Libor manipulation is proving to be the tip of the iceberg as inquiries into assets from derivatives to foreign exchange show that if there’s a chance to rig benchmark rates in world markets, someone is usually willing to try.
Global regulators may start overseeing currency rates in a widening response to benchmark- rate setting scandals that began with revelations on the manipulation of Libor, two people familiar with the matter said.
Citadel LLC, the Chicago-based hedge fund firm founded by Kenneth Griffin, cleared the first credit- default swap tied to a company’s debt after the Securities and Exchange Commission reversed a decision on margin rules.
New collateral rules for hedge funds, insurers and others in the $633 trillion over-the-counter derivatives market are poised to boost demand for U.S. Treasuries, potentially slowing rising yields as the Federal Reserve considers scaling back unprecedented stimulus.
European Union nations will seek a deal on how far exchanges such as Germany’s Deutsche Boerse AG should be forced to open up their derivatives-clearing services to competition as part of an overhaul of the bloc’s financial market rules.
NYSE Euronext, the operator of stock exchanges in Paris, Brussels, Lisbon and Amsterdam, said a technical malfunction stopped users from entering orders and delayed the start of trading on its European bourses.