TABB Group Fixed Income recently published two new research pieces. One for which we spoke with 23 swaps dealers about everything and anything (link here), and the other in which we took a deep dive into what an agency desk for swaps trading might look like and why it matters (link here). The short story,… Read More »
It seems that LCH.clearnet has been sale forever – well, at least for the last few years. It seems we might finally be getting somewhere. Although in my eyes the prize to be won is Swapclear, the LSE’s motives are different. They want access to the equity and listed derivatives clearing that LCH would bring… Read More »
Many still seem skeptical of credit default swaps (CDS), but the reality is (and always has been) that they play an important benchmarking function for the global credit markets. That’s why when I heard that GM CDS was trading without the existing of any underlying GM bond I wasn’t at all surprised. Two things to… Read More »
I can’t find a good link so here’s the story from Dow Jone’s Katy Burne. I think my best contribution is the last quote in the article. Enjoy. (c) 2010 Dow Jones & Company, Inc. NEW YORK (Dow Jones)–The Commodity Futures Trading Commission’s decision Thursday to delay a controversial vote on how over-the-counter derivatives should… Read More »
First it was shortening the time it takes data to get between New York and Chicago, now its New York and London. The big difference here is that the NY to London route is 3 times longer and has an ocean in the middle – no small feet of engineering and no small price tag.… Read More »
The Wholesale Market Brokers Association of American (WMBA) submitted to the CFTC guidelines as they saw them for what are to become Swap Execution Facilities (SEF). The full submission can be read here. Although this provides some clarity as to what the industry wants, this is only one voice and only the beginning. The Dodd-Frank… Read More »
Goldman formally announced yesterday its new OTC derivatives clearing unit – Derivatives Clearing Services. This is no real surprise as clearly the major dealers are getting ready to help their clients navigate the new, more complicated world. Further, I’m sure we’ll see similar announcements in the coming week from Goldman’s competitors. This article looks into whether GS… Read More »
Senator Lincoln is backing down slightly from originally proposed derivatives amendment. Its still far from reality in my opinion, but we’re getting there. “The fact the [legislation] is so broad-reaching may cause problems for small banks that already have capital constraints and are also not budgeting for the legal ramifications of this,” said Kevin McPartland,… Read More »
Everyone is still trying to understand what happened on May 6. Stub quoting was certainly not the overall cause, but might help to explain why a few stocks went to a penny. “If we end up with the trading curbs across all the trading exchanges that have been discussed, it would make this become a… Read More »
Hardware acceleration has become a hotter and hotter topic in financial services as latencies are now measured in microseconds and codeoptimization is starting to hit its limits for the upper echelon of low latency traders. I authored a TABB Group report on this subject in the summer of 2009, and recently spoke with Hanweck Associates… Read More »