ICE plans CDS index futures
IntercontinentalExchange says it plans to launch four futures products for credit default swaps indexes in May and is leaving the door open to create further products. "We are optimistic that the new market will be successful and attract new players, but we cannot estimate how large it might become," said Peter Barsoom, chief operating officer at ICE Clear Credit. "All new markets take time to grow." The Trade News (U.K.)
Clearing-execution agreement remains in limbo
With a June 10 deadline looming for many buy-side firms to begin clearing over-the-counter swaps, some industry members want to revisit the framework for dealing with faulty execution. Although an agreement was thought to be in place and supported by ISDA and the Futures Industry Association, some buy-side firms are expressing concerns about provisions related to breakage fees and are working to reopen negotiations. International Financing Review (subscription required)
Australia plans to alter how benchmark rate is set
Australia's bank bill swap rate will soon be based on actual prices from electronic brokers and markets, rather than panelists' submissions, according to the industry group that publishes the benchmark. The change comes as major banks withdraw from the rate-setting panel. Bloomberg
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Regulation could prompt HFT of interest-rate swaps
Changes to the interest-rate-swap market could lead to the beginnings of algorithmic trading, according to some experts. "I'm not sure we yet have the deep and liquid central limit order books that are required to tip the balance to support significant algorithmic trading ... but with the Dodd-Frank Act clearing mandate coming into effect in the U.S. during 2013, I think we will possibly see more algorithmic strategies emerging," said Simon Wilson of Royal Bank of Scotland. Risk.net (subscription required)
Transaction taxes aren't meeting expectations, report says
Data from TMF Group show that Europe's financial-transaction taxes have reined in market activity but have fallen short in terms of the amount raised. Hungary's tax has pulled in less than half of what was expected. France is experiencing a similar return. Italy's tax launched only this month, but TMF says it has already shrunk trading volume 38%. City A.M. (London)
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