Derivatives issues in Investment Management

Syndicate this category

This Month

Month Archive

May 2008
April 2008
March 2008
February 2008
January 2008

Main Page

« Previous 5 articles | Next 5 articles »

Tuesday, March 25

CME Group to acquire Credit Market Analysis

by Sean Sprackling on Tue 25 Mar 2008 19:01 GMT

Exchange Further Expands OTC Presence through Leading Provider of Credit Derivatives Market Data

CHICAGO, March 25, 2008 - CME Group, the world's largest and most diverse derivatives exchange, today announced that it has acquired Credit Market Analysis Limited (CMA), a leading provider of credit derivatives market data. This move will provide CME Group with greater exposure to the rapidly growing $46 trillion in notional outstanding credit derivatives market. It offers the potential to leverage CME Group's clearing and trade execution capabilities, enhancing CMA's products to create greater value and efficiencies for its customers.

As a wholly owned subsidiary of CME Group, CMA will remain headquartered in London and will continue to operate under the CMA name. Laurent Paulhac will continue in his role as the company's Chief Executive Officer and the existing CMA management team is expected to remain in place.

CMA currently offers two products to over-the-counter (OTC) ... more »

Leave Comment | Permanent Link | Cosmos

Thursday, March 20

CDO Fantasy

by Sean Sprackling on Thu 20 Mar 2008 09:14 GMT

Not much of a post I am afraid, but in the holiday spirit, here's something that made me smile:

CDO Fantasy - to the tune of Queen's Bohemian Rhapsody:

Is this the real price?
Is this just fantasy?
Financial landslide
No escape from reality

Open your eyes
And look at your buys and see.
I'm now a poor boy
High-yielding casualty

Because I bought it high, watched it blow Rating high, value low Any way the Fed goes Doesn't really matter to me, to me

Mama - just killed my fund
Quoted CDO's instead
Pulled the trigger, now it's dead
Mama - I had just begun
These CDO's have blown it all away

Mama - oooh
I still wanna buy
I sometimes wish I'd never left Goldman at all.

I see a little silhouette of a Fed
Bernanke! Bernanke! Can you save the whole market?
Monolines and munis - very ... more »

Leave Comment | Permanent Link | Cosmos

Tuesday, March 18

TABB Group Says Spending on Automating OTC Derivatives Processing is Growing

by Sean Sprackling on Tue 18 Mar 2008 16:59 GMT

TABB Group Says Spending on Automating OTC Derivatives Processing is Growing at 30% CAGR, Rising from $70 Million in 2008 to $120 Million by 2010

Although Nearly 1,000 Hedge Funds Currently Trade OTC Derivatives, Few Use Automated Processing Systems, Increasing Risk and Reducing Transparency

NEW YORK, NY, March 18, 2008 – In a research note published today, “OTC Derivatives Processing: Blazing a Trail to Automation,” TABB Group says that although top-tier, sell-side broker dealers have invested millions of dollars since the mid-1990s developing best-of-breed processing for their burgeoning OTC derivatives businesses, many other counterparties, including mid-tier banks, hedge funds and other trading firms have yet to implement any kind of automated solution, a problem that has not gone unnoticed by the Federal Reserve.

According to Kevin McPartland, senior analyst at TABB Group and author of the note, “When the Fed first instructed major dealers in 2005 to catch up on ... more »

Leave Comment | Permanent Link | Cosmos

Thursday, March 13

Deutsche Borse enters the burgeoning Logevity Derivatives market

by Sean Sprackling on Thu 13 Mar 2008 12:02 GMT

Back in january I wrote an article about how several investment banks such as JP Morgan and Goldmans had entered the longevity market by releasing indices and products to allow buyers to track and hedge out their longevity risk. Now news has come in that the exchanges (or rather an exchange - Deutsche Borse) has also entered the running.
The Exchange announced yesterday that its German index was up and running and that they are planning for equivalent indices for the rest of Europe including the UK. For some reason the marketing fraternity seems dead set on creating ridiculous names in this area - JP Morgan have called theirs Lifemetrics and DB's are to be called Xpect Indices. So, despite these daft names, when such a major exchange is promoting these indices to facilitate OTC trading I think it is faior to say that the time for the Longevity market has finally arrived....

Leave Comment | Permanent Link | Cosmos

Eurex, ISE and OCC Announce Transatlantic Options Trading and Clearing Link

by Sean Sprackling on Thu 13 Mar 2008 11:42 GMT

13 Mar 2008

Eurex, the International Securities Exchange (ISE), and The Options Clearing Corporation (OCC) today announced they plan to create a transatlantic trading and clearing link that will allow Eurex customers to access ISE’s options market using their existing Eurex connections. Through this link, Eurex members will have access to the full suite of options products available at ISE and be able to execute orders in the ISE order book using their existing connectivity to Eurex.

As part of this initiative, ISE, Eurex and Eurex Clearing, the clearing house of Eurex, today signed a Term Sheet with the OCC, the central counterparty for all US listed securities options contracts. This Term Sheet is the first step toward signing a Definitive Agreement that will enable Eurex customers to clear contracts traded via the link to ISE through their existing clearing accounts at Eurex Clearing. Eurex, ISE and OCC expect the ... more »

Leave Comment | Permanent Link | Cosmos