The Bank for International Settlements says banks' increasing practice of recording variation margin for cleared derivatives as settlement payments, rather than as transfer of collateral, leaves some liquidity risks unaccounted for. BIS says these settled-to-market derivatives "should be included in the calculation of the 20% of derivative liabilities."
Norwegian derivatives trader Einar Aas has agreed to liquidate personal assets, including real estate, for distribution to Nasdaq Commodities' default fund participants who had to replenish the funds after Aas defaulted, the exchange said. A regulator and others are questioning why Aas was not identified to members and other clearinghouses for at least 24 hours.
Commodity Futures Trading Commission Chairman J. Christopher Giancarlo's plan to help US clients clear foreign swaps on overseas central counterparties could take some time, experts say. "[T]he details will be really important in order to gain consensus among market participants and non-US regulators," says Nihal Patel of Cadwalader, Wickersham & Taft.
US Securities and Exchange Commission member Robert Jackson Jr. says that for-profit stock exchanges have become monopolies. "The SEC has stood on the sidelines while enormous market power has become concentrated in just a few players," Jackson says.
Singapore's Straits Financial is partnering with Trading Technologies to give its Asia-Pacific region clients access to TT's platform for trading futures, options and cryptocurrencies.
Oil price swings and new regulations have commodity traders considering how to restructure their operations and cut costs amid shrinking margins. Some traders predict an increase in mergers and acquisitions.
S&P Global Platts announced it is seeking feedback on changing its Brent crude oil price assessment to include North Sea crude delivered in Rotterdam and grades from outside the region, including Central Asia and West Africa. Platts is taking feedback until Dec. 10 and could announce the changes in early 2019.
Asian investors have put $4.2 billion into US-based private biotech startups this year, which amounts to more than 43% of all venture capital investing in the US biotech sector in 2018, according to PitchBook. This constitutes a big jump from 11% in 2016.
The trends in gig economy income are a mixed bag, a study by the JPMorgan Chase Institute found. People involved in what are essentially leasing startups, such as Airbnb, Turo and Parklee, brought in an average of 69% more in 2017 than in 2013, while drivers for transportation services, such as Uber and Lyft, earned 53% less.