Intercontinental Exchange global head of derivatives Steven Hamilton says about 40% of Sterling interest rate risk is being regularly exchanged in SONIA futures. "From the conversations we are having and the amount of risk being exchanged, listed SONIA contracts are increasingly a useful tool for market participants and our clients are telling us that it's easier to use standardized instruments to manage this big change," he said.
Researchers studying market data have concluded that high-frequency trading is a necessary part of the current market structure. HFT represents over half of equity market trading volume in the US and 24% to 43% of Europe's trading volume.
Executives from the world's largest commodity traders told an industry summit that, with oil prices already above $73 a barrel, a rise to $100 is possible as investment in new supply slows. "The issue for oil is not demand ... the supply situation is quite concerning," said Trafigura Executive Chair Jeremy Weir.
Market participants say the growing number of European public institutions moving to clear their derivatives trades should not receive funding waivers. Clearing members say that the sovereigns, supranationals and public agencies should be required to post initial margin and contribute to the default fund just like other users.
Securities and Exchange Commission members Hester Peirce and Elad Roisman have called on SEC chairman Gary Gensler to reconsider his plans to revisit certain rules enacted under the previous administration. "As far as we can tell, the agency has received no new information which would warrant opening up any of these rules for further changes at this time," wrote Peirce and Roisman.
BlackRock is adding derivatives analytics provider Cassini Systems' margin-based analytics to its Aladdin platform starting in September. Combining Aladdin's derivatives capabilities with Cassini's margin analytics will "help clients more efficiently manage their margin, leveraging analytics at multiple points during the derivatives lifecycle," said BlackRock's head of Aladdin business Sudhir Nair.
London-based Sucden Financial has gone live with its STAR Mobile trading app that allows clients to connect to Sucden's futures and options trading platform. The system includes real-time trading and position monitoring of global markets, such as CME, ICE and LME.
Health insurance technology startup Bright Health Group is aiming for a valuation in excess of $14 billion in its initial public offering. Co-founder Bob Sheehy said the company will offer 60 million shares priced between $20 and $23.
Startup multi-channel marketing platform Iterable raised $200 million in a Series E funding round that gave it a $2 billion post-money valuation. Investors in the round included Deutsche Telekom Capital Partners, Silver Lake, Adams Street and Glynn Capital.
IRL, a social networking startup that is growing popular among teenagers, raised $170 million in a funding round led by SoftBank that gave it a $1.1 billion valuation. With the new capital the company will work to add a variety of new services.