An expert panel during FIA's 34th Annual Futures & Options Expo in Chicago agreed that US swaps reform should not allow competitive execution to slide backwards as is occurring in Europe, though there should be room for innovation. The US Commodity Futures Trading Commission's Matthew Kulkin told the panel that "this is not about a roll-back but about tweaking."
A panel at FIA's 34th Annual Futures & Options Expo in Chicago expressed confidence in the growth of derivatives backed by digital assets, but cautioned introducing new products too quickly. "We all really have to be self-conscious that we're professionals in a professional industry, and not just be in a race to apply all the innovations simultaneously and instantaneously," said ErisX chief Thomas Chippas.
The Basel Committee on Banking Supervision published a consultation on potential changes to the leverage ratio treatment of client cleared derivatives by investment banks, including allowing cash and non-cash client initial margin to offset the potential future exposure of derivatives centrally cleared. The Basel Committee is seeking stakeholder input on the revisions. Read FIA's response.
The European derivatives market is worth €660 trillion, according to a study based on data culled from regulatory filings and compiled by the European Securities and Markets Authority. The report found interest-rate derivatives are the most frequently traded instruments, while central clearing rates on both credit and interest rate derivatives were up 27% and 58% respectively last year.
CME Group says US West Texas Intermediate crude oil contracts have become a near-24 hour benchmark due to a shift in crude oil exports to Europe and Asia, with the South Korea and China market growing the fastest. "Ten to 20% of our daily volumes are trading in European and Asian hours... names that we never came across are now regulars," said CME's Owain Johnson.
Uber sold $2 billion of bonds in its first trip to the bond market. The private offering was originally for $1.5 billion, but underwriter Morgan Stanley expanded it to $2 billion in response to strong demand from investors.
Vacasa, a startup that handles property management for people who rent out homes to travelers, raised $64 million in its most recent funding round. The capital will fund the company's expansion into real estate sales.
Future Family, a startup that aims to reduce the cost of fertility services, raised $10 million in its most recent funding round. CEO Claire Tomkins said most of the money would go toward arranging partnerships with more fertility clinics and expanding the startup's monthly subscription program offerings.
Uber reportedly is developing a staffing service, called Uber Works, that will provide independent contractors for short-term assignments.
Careem, a startup that provides ride-hailing services in the Middle East, North Africa, Pakistan and Turkey, raised $200 million in its most recent funding round. A source said the company now has a valuation exceeding $2 billion.