ICE Clear Europe, ICE Clear US and ICE Clear Credit have bolstered their default waterfall schedule by including insurance protection as a form of "skin in the game," says Intercontinental Exchange chief risk officer Kevin McClear. The default insurance is meant to give ICE a way to retrieve some of the funds clearing members could lose during a default.
European Central Bank Vice President Luis De Guindos told a conference that European bank stress tests could include "climate change potential risks in the adverse scenario" in 2022. "Climate change involves a lot of actors and central banks have to play a role," said De Guindos.
The Securities and Exchange Board of India has categorized the modifications bourses can make to commodity derivatives futures contract specifications for quality parameters. SEBI has set three different categories of modifications: Non-material, material and those that require SEBI permission.
The Federal Reserve Bank of Richmond has scheduled an industry workshop Wednesday to bring uniformity to how the financial industry gauges cyberrisk and to collect input on a Fed white paper on the subject. "If everybody uses the same taxonomy, you can start comparing data and having a dialogue," Oliver Wyman partner Evan Sekeris says.
The latest disclosures show just how significant central counterparties are, writes Clarus Financial CEO Amir Khwaja. With "$740 billion of initial margin, $210 billion of default resources, average daily variation margin calls of $20 billion, oodles of cash; clearing houses really are a $1 trillion systemically important market infrastructure," he writes.
CME Group plans to launch block cheddar cheese futures and options next year and is considering adding barrel cheese futures. The cash-settled cheddar future contract pricing will be based on the US Department of Agriculture's monthly average for a 40-pound block of cheddar.
India's commodity brokers and traders are asking the finance ministry for a rebate on the 0.01% transaction tax levied on exchange-traded commodity derivatives. Market participants say the tax is forcing firms to hedge their risks abroad on the Chicago Mercantile Exchange, London Metal Exchange and Intercontinental Exchange, rather than in India.
Roche Holding is acquiring Promedior, a biotech startup, in a deal worth up to $1.39 billion. The deal includes an initial payment of $390 million and could include up to $1 billion more based on meeting certain commercial, regulatory and development milestones.
Moveworks, a startup that focuses on using artificial intelligence to resolve IT issues, raised $75 million in its most recent funding round. The company will use the new capital to accelerate research and development.
Punchh, a startup that uses artificial intelligence to promote customer engagement and loyalty, raised $40 million. Much of the new capital will go into expanding the company's AI capabilities as it moves into new sectors.