The buy-side may reduce its risk hedging activities as a result of clearing requirements for OTC derivatives under the Dodd-Frank Act, which will capture asset managers for the first time in June, an expert has warned.
The European Securities and Markets Authority has excluded turnover derived from ancillary services in the calculation of annual fees trade repositories will pay as new rules governing OTC derivatives in Europe through the European market infrastructure regulation approach.
A new industry-led reporting and communication standard for OTC derivatives will give buy-side firms greater scope to automate regulatory-mandated reporting, including splitting margin payments to central counterparties.
Exchange competition continues to dominate the listed futures landscape in Europe and the US with two new venues taking steps toward challenging incumbents.
Only a third of asset managers are operationally prepared for changes to post-trade processing of OTC derivatives in Europe, and many see costs for compliance rising, new research has shown.
According to figures from research firm Strategic Insight, an affiliate of The TRADE, bond funds in 2012 captured comparatively high inflows in Asia compared to equity funds, with implications for outbound investment from individual Asian markets.
Institutional investors anticipate a series of changes to their fixed income investment and trading practices as post-crisis reforms threaten to squeeze liquidity, results of theTRADEnews.com's March poll indicate.
In Q1 2013, total proceeds from Asia-Pacific-listed equity and equity-linked deals (ex-Japan) saw a 13.3% sequential decline from the US$52.6 billion recorded in the fourth quarter 2012, according to figures from Thomson Reuters for the period to 25 March. Proceeds of US$45.6 billion nevertheless reflect a 6.2% increase on Q1 2012.
The number of futures commission merchants serving the US futures markets will continue to decline despite a growing willingness of clients to diversify relationships, according to a recent TABB Group report.
Global markets operator Nasdaq OMX will acquire the eSpeed electronic trading platform for US treasury notes and bonds as the fixed income market undergoes wholesale regulatory-driven change.