More guidance is being offered by the International Swaps and Derivatives Association for dealing with foreign exchange, interest rate, equity and commodity derivatives contracts in the event that certain interbank offered rates cease to exist or are materially changed.
The UK Financial Conduct Authority's use of sandboxes to support the development of new financial technology is anti-competitive because some firms could be at a disadvantage, representatives of French and German regulators told a panel. "We'd rather support an approach where we create a single point of contact," said Deutsche Bundesbank board member Joachim Wuermeling.
Shanghai Futures Exchange's launch of copper options today reportedly drew Swiss trading house Trafigura as one of the first to trade the contracts among the 120 participants that took part. Nearly 8,000 contracts changed hands in the morning session, equal to 40,000 tons of copper and estimated to be worth $292 million.
The Shanghai Futures Exchange will propose a futures contract for alumina this year or early next year that would compete with CME Group's contracts. The exchange is also exploring stainless steel and aluminum alloy futures, although it takes a long time to launch a new contract in China, said SHFE's Zhang Zhiyong.
Investors are not paying enough attention to structural challenges Europe faces because they are focused instead on Brexit, says Theodora Zemek, head of fixed-income strategy at Neptune Investment Management. But she says the risk of inflation and political uncertainty after a no-deal Brexit makes the UK also an unattractive proposition.
Critics of the European Securities and Markets Authority's partial restrictions on binary options trading say the regulator should have gone further and banned the activity. Instead, ESMA has extended restrictions imposed in July for three months and has permitted trading to continue in certain circumstances.
Banks needing to vet third-party vendors to meet risk requirements have turned to standardized questionnaires, but concerns remain that the questionnaires need tweaking and that vendors are reluctant to share detailed information.
For the first time, BBB-rated bonds account for more than 40% of US corporate bonds, James Mackintosh writes. Meanwhile, Europe has replaced most of lower-rated bonds with bonds slightly above investment grade.
BlackRock's iShares has brought to NYSE Arca an exchange-traded fund that buys bonds that mature in mid-December 2028. The iShares iBonds Dec 2028 Term Corporate ETF is designed to replicate the performance of the Bloomberg Barclays December 2028 Maturity Corporate Index.