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Tag Archives: ISDAfix

The Spread – This Is How We Do It – 8/24 The Spread,Video,video

It’s not often that “The Spread” highlights music in the industry (the exception being the DJ activities of Goldman Sachs’ incoming CEO), so today is a treat. Apparently some BNP traders responsible for trying to rig ISDAfix to benefit derivatives positions like to make song references in their messaging.  The following are links to the stories (and songs) referenced in this week’s episode:  Bloomberg – Citing Salt-N-Pepa, BNP Traders Tried to Rig Benchmark Rate YouTube – Salt-N-Pepa’s “Push It” YouTube – Montell Jordan’s “This Is How We Do It” eFinancialCareers – Yet another big-name equity derivatives MD changes seats eFinancialCareers – Barclays inexplicably…

Salt-N-Pepa and rate rigging; Barclays personnel move; Stocks-VIX correlation breakdown JLN Options Newsletter,Newsletter,Options

Observations & Insight Citing Salt-N-Pepa, BNP Traders Tried to Rig Benchmark Rate Matt Robinson – Bloomberg BNP Paribas SA traders referenced song lyrics when trying to rig a benchmark for interest-rate derivatives, with a favorite tune being a 1987 rap hit by Salt-N-Pepa, according to U.S. regulators. /bloom.bg/2MYK69N ****SD: Swaptions spotted in the wild! I love cases that lead to public scrutiny of trader chats. Here’s |a link to the Salt-N-Pepa song in question and here’s a link to the Montell Jordan song referenced. (Do you think the traders worked up a sweat trying to push it? Did they get…

JPM’s $65m ISDAFIX fine; EU HFT rules; Blockchain for margin and collateral? John Lothian Newsletter,Newsletter

First Read Hits & Takes JLN Staff The MontrÈal Exchange announced new futures on exchange-traded funds (ETF) and trust units are now available.~JJL The European Banking Authority released its 2017 annual report. A few of the key areas earmarked for extra focus in 2018 are: preparation for Basel III implementation, improving credit risk modelling, developing a common framework for non-performing loans, and third-country equivalence.~SD According to a recent study from FTSE Russell, “the green economy represents 6 percent of the market capitalization of global listed companies, approximately US$4 trillion.” That’s roughly the same as fossil fuels. ~SD Bank of Canada…

ICE’s Hutcheson Talks Benchmarks and Assuming the Helm of ICE Clear Europe Feature,Video,video

“I think there’s a strong push from the regulatory side to make non-standardized business expensive. That has already started to bite in a number of asset classes but hasn’t really reverberated fully through the industry.” Finbarr Hutcheson, currently the president of ICE Benchmark Administration (IBA), will be taking over ICE Clear Europe later in the year when Paul Swann retires. In the meantime, Hutcheson still has plenty to focus on at IBA.  Opened for business in 2014, IBA maintains three key benchmarks: LIBOR, ICE Swap Rate (formerly ISDAFIX) and the LBMA Gold Price. But it is expanding into some non-benchmark…

John Lothian Newsletter: Black Swan Dangers May Lurk in Emerging Markets Amid Greece Risk; Traders anxious ahead of extra second in day; NY bank watchdog sinks teeth into Isdafix rigging John Lothian Newsletter,Newsletter

First Read John Lothian News Special Report: Unchained: How Blockchain And Bitcoin Are Going Mainstream Please click on the Special Report image to see the full report, which includes a full feature story, videos from Hans-Ole Jochumsen on Nasdaq’s efforts in blockchain technology and Adam Honoré, CEO of the fintech consulting firm MarketsTech, as well as the best recent Top Stories on the topic. ++++ JLN Summer Intern Education Series To Hit New York And Chicago John Lothian News John Lothian News is hosting its third annual MarketsWiki Education 2015 Chicago and New York World of Opportunity Summer Intern Education…

John Lothian Newsletter: Investigators probe $500tn interest rate swaps market; As LME looks east, CME throws down challenge in west; NYSE liquidity drive pushes midday auction John Lothian Newsletter,Newsletter

First Read Have a nice extended weekend everyone. For those in Chicago, you can ride your bike on Lake Shore Drive on Sunday morning. On Monday, a tip of the cap to those who put their lives on the line and made the ultimate sacrifice for our country. We’ll be back on Tuesday. ++++ Winston & Strawn sued in $100 million malpractice lawsuit Claire Bushey, Crain’s Chicago Business A more than $100 million malpractice lawsuit filed in federal court against Winston & Strawn says the firm failed a client by not advising the business to stop breaking the law. A…

John Lothian Newsletter: Five global banks to pay $5.7 billion in fines over rate rigging; CFTC takes aim at Isdafix manipulation with Barclays case; Benjamin Lawsky to Step Down as New York’s Top Financial Regulator John Lothian Newsletter,Newsletter

First Read Practice Does Not Always Make Perfect John Lothian‘s shoulder surgery earlier this week marks the third time in three years that he has gone under the knife. After a double knee replacement in 2013 and back surgery in 2014, he viewed this one as relatively minor, calling it “virtually outpatient.” He had even planned to come downtown today. Normally, when the media reports a person’s return home from the hospital, they add the phrase “…and resting comfortably.” We spoke with John this morning and it is safe to say he is neither resting nor comfortable. Though he is…

John Lothian Newsletter: ICE to change Isdafix calculation; U.S. regulators should study oil slump – CFTC official; CME Group to launch euro-denominated cocoa contract John Lothian Newsletter,Newsletter

First Read Just Floored: Who Says Jeff Sprecher hates open outcry? Jim Kharouf – John Lothian News (Rerun from last Friday in case you missed it.) Open outcry is still alive and well in New York. The New York Stock Exchange opened a new trading floor for the NYSE Amex options market this week, a completely renovated space that also houses: NYSE’s US cash equities, ICE Futures US members, NYSE Arca’s customer service and the NYSE/ICE’s national operations center. The 7,000-square-foot space, with 22-foot ceilings, has been renamed “The Buttonwood Room,” a tip of the cap to the origins of…

ISDA’s Robert Pickel Discusses the Future of Financial Benchmarks (Part 2) Interview,Regulation,Video

Robert Pickel

After the financial crisis in 2008-09, regulators across the globe set in motion a complete overhaul of the financial markets, with the ultimate goals being transparency in the previously unregulated swaps market, and ensuring that there is adequate collateral backstopping the sector in the event of financial shock. The top items on the list were central counterparty clearing of swaps, the exchange of initial and variation margin among parties to non-cleared swaps, and the reporting of trade data to central repositories, so that market overseers can identify risks that may be building in the system. See part 1 of our…