Rules under consideration by federal regulators could require clearinghouses to back up Treasuries pledged as collateral in the $693 trillion over-the-counter derivatives market with credit lines, according to industry executives.
On a good day, 27-year-old Bobby Timberlake at CME Group Inc. in Chicago rounds up $2.5 billion from the world’s biggest traders and banks such as JPMorgan Chase & Co. to cover their losses in the $639 trillion derivatives markets.
The market for options on credit derivatives indexes has surged more than 40 percent in the past month to $98.8 billion as investors search farther afield for cheap hedges protecting against a sell-off in the bond markets.
CME Group Inc., operator of the world’s largest futures exchange, has been approved by the U.S. Commodity Futures Trading Commission to operate a database for information on interest rate, credit and other swaps.
JPMorgan Chase & Co. and Bank of America Corp. are helping clients find an extra $2.6 trillion to back derivatives trades amid signs that a shortage of quality collateral will erode efforts to safeguard the financial system.
Swaps investors should be prepared to pay more for clearing services if they want their margin protected against being used to fund another investor’s default, industry executives said during a panel discussion in Florida.
LCH.Clearnet Group Ltd. asked to be exempted from a rule taking effect next week requiring the largest clearer of interest-rate swaps between banks and their customers to confirm trades in less than 60 seconds.
Bloomberg VCON is First Provider to Connect Multiple CCPS for IRS Citadel LLC, Freddie Mac and PIMCO use Bloomberg’s industry workflow solution to connect to CME Clearing Bloomberg VCON helps reduce costs, market risks and meet mandates of Dodd-Frank Act Business Wire NEW YORK -- October 21, 2010 Bloomberg today announced that VCON, the firm’s voice trade confirmation system for cash and derivative instruments, is the first to connect buy-side and sell-side firms to multiple central clearing counterparties (CCPs) for interest rate swaps (IRS) central clearing. Bloomberg also announced that Citadel LLC, Freddie Mac and PIMCO are among the firms now using Bloomberg’s VCON industry workflow solution to connect to CME Clearing. Other clearing houses already connected via the Bloomberg tool are the Intercontinental Exchange (ICE) & CME Clearing for Credit Derivatives, and