Policy makers in Indonesia and Malaysia have been so successful in quashing currency volatility that this is breeding a new danger: complacency.
Only one-tenth of global derivatives turnover is in contracts denominated in the currency of an emerging market economy, and what is traded is said to be disproportionately over-the-counter.
Global liquidity will continue to fragment if regulators do not harmonize rules on cross-border derivatives trading before new regulations come into force in the EU.
The ECB has previously tried to move the clearing of euro transactions away from London and into the Eurozone but the UK won a lawsuit to prevent this happening.
India’s index options market, the biggest in the world, is a virtual monopoly.
A simmering debate about whether the leverage ratio or risk-weight capital rules should rightly act as the binding constraint on the biggest banks is likely to soon come to a head.
Global regulators proposed tougher standards for clearinghouses at the heart of the $493 trillion derivatives market, taking some of the biggest steps yet to prevent the platforms from becoming too big to fail.
A Bloomberg dashboard that aggregates several options- and futures-based functions indicates solid fund flows for the bull run, suggesting that India’s markets could continue their surge for the foreseeable future.
An obscure back-office function intended to bring more stability to trading has emerged as a pawn in the post-Brexit battle for London’s financial-services industry.
The prices of derivatives used for hedging currency risk are violating no-arbitrage rules, a development that points to a significant decline in global banks’ ability to intermediate capital flows from global investors.