India's National Stock Exchange has overtaken CME Group as the largest global derivatives exchange by trading volume, trading 6 billion contracts in 2019, according to FIA data. Overall, the global exchange-traded derivatives markets grew 13.7% to a record 34.47 billion contracts last year with Asian-Pacific exchanges seeing the most growth in 2019, up 29.1% to 14.49 billion contracts, while European and US trading volume declined 4.4% and 2.8%, respectively.
European aircraft manufacturer Airbus will soon launch Skytra, a London-based venue offering futures and options contracts aimed at hedging against ticket price volatility. Skytra will launch price tracking indices for the six most active geographic sectors first and add other sectors gradually.
UK banks are getting pressure from clients and regulators to bolster their presence in the EU ahead of Brexit, in many cases beyond their initial commitments. "Many of our clients -- particularly the quasi-government clients -- have been most vocal about banks maintaining their presence in continental Europe and maintaining that level of dialogue even if Brexit is softened," said Nomura head of wholesale banking Steven Ashley.
The Federal Reserve is considering no longer holding foreign banks that have shrunk US assets to standards faced by domestic banks. The Fed is also considering incremental changes to bank oversight that would "increase transparency, accountability and fairness," Vice Chairman for Supervision Randal Quarles says.
Bank Negara Malaysia has issued draft recovery and resolution rules requiring financial institutions to identify and put in place a suite of recovery options to restore long-term viability in the event of a system-wide stress event. BNM will give financial institutions 12 months to submit their plans.
Major exchange groups including Deutsche Boerse, Intercontinental Exchange and Nasdaq have voiced support for the European Securities and Markets Authority's proposal to remove position limits from new and illiquid commodity derivatives contracts.
Starting Feb. 3, Eurex Clearing will increase the mandatory contributions to its default fund, to 9% of an average margin metric from the current 7%, in an effort to counter slow growth in its derivatives business. Eurex chief risk officer Dmitrij Senko says a rise in business in segregated accounts has increased mock losses.
US banks plan to pour an estimated $1 trillion into China's $45 trillion market for financial services as China works to improve access for foreign firms, but they will still face tough competition from domestic rivals.
An International Organization of Securities Commissions report recommends that trading venues and participants timestamp trades in universal time to help facilitate an audit trail of trading events. IOSCO says that with more and faster trading happening across multiple venues and jurisdictions, it is more important than ever to synchronize the clocks participants use.
The Dubai Gold & Commodities Exchange broke records for both annual volumes and average open interest last year. The exchange traded some 23.06 million contracts in 2019, while its clearing arm Dubai Commodities Clearing Corporation cleared over $866 billion in notional value.
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