For the time being London's banks should resist EU pressure to move their euro clearing to the EU and, instead, await the outcome of EU-UK talks on the issue, Bank of England Governor Andrew Bailey has said. "While waiting is sensible from the point of view of the banks, it puts the responsibility on the authorities to sort the thing out," he said.
US Securities and Exchange Commission Chairman Gary Gensler told a Senate Banking Committee that the agency will release a post-mortem report on the GameStop saga soon as part of a to-do list that includes bringing greater transparency to the bond market. Gensler also defended his move to require firms to disclose climate change risks, stating that: "If investors want information about climate risk--and it looks like tens of trillions of dollars of assets under management are asking--then we at the SEC have a role to put something out to notice and comment, do the economic analysis, and really see what investors are saying."
Chicago venture capital firm Jump Capital has launched a seventh fund, raising $350 million it plans to use for getting more deeply involved in cryptocurrency investing. Jump Capital's Sach Chitnis says that there is a "potentially a generational opportunity in the crypto space."
Open interest on CME Group's Ether futures rose 80% to $613 million last month, while open interest in bitcoin futures increased 29% in the same period to $1.6 billion, according to CryptoCompare data. The jump means that CME has become the largest venue for open interest in the two leading crypto futures.
Interest rate derivatives trading in contracts linked to the US secured overnight financing rate are trending towards maturities of more than one year, reaching a year-to-date notional value of $1.9 trillion compared to $1.1 trillion for shorter contracts, according to ISDA data. The weekly total traded notional for August was up 56%.
The Bank of England has appointed former CEO of clearinghouse LCH as an external member of its Financial Market Infrastructure Board with oversight for central securities depositiories and counterparties. "Martin will prove to be an excellent addition to the FMI Board and will bring a huge amount of expertise on the financial market infrastructure sector, technology and management," said BoE deputy governor for financial stability and FMI Board chair Sir Jon Cunliffe.
High-speed trading firm Jump Trading has set up a digital asset division, Jump Crypto, focusing on blockchain ecosystems and cryptocurrencies. Jump Crypto president Kanav Kariya says the firm wants to be known for more than just trading, and that they are "building the plumbing and infrastructure for decentralized applications."
Natural gas: a volatile winter ahead? August 2021 was the most active August of all time for Natural Gas options. Traders are expecting the US natural gas market to potentially have one of its most challenging winters in many years. Read more
Legal experts say that a federal antitrust class-action lawsuit against foreign-exchange trading platform Currenex and its parent company State Street, as well as several other defendants, over the issue of alleged priority agreements with liquidity providers faces several challenges. Temple University Beasley School of Law professor Tom Lin says that getting discovery will be critical since the allegations "are supported in many respects by inferences and circumstantial evidence."
Webinar: New markets and the changing derivatives game Regulations and cross-asset platform support of new products including Bitnomial trading are new derivatives challenges. Have you found a way yet to support them with your middle and back office? Join us on 14 October to discuss your reconciliation challenges, register here
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The Solana blockchain network which hosts the eponymous cryptocurrency says it had experienced "intermittent instability" in their connection after an outage. "Resource exhaustion in the network is causing a denial of service, engineers are working towards a resolution," the Solana Foundation said in a tweet.
Tuesday at IDX features keynotes, sessions and a debate all focused on climate change and the role of derivatives in supporting a transition to a more sustainable environment and the management of climate change risk. JP Morgan's Chuka Umunna will highlight opportunities and challenges for financial institutions managing strategies for integrating ESG into their own operations and business activities as well as for their clients in his keynote address. Other sessions cover new sustainability products, EU and US regulated exchanges and a debate about aligning financial markets with a net zero, nature positive outcome. Register today and make your plans to join us on September 27-28!