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Regional implementation of mandatory clearing and swaps trading reforms means differences in regulatory regimes could make all the difference in the race for alpha.

Regulatory equivalence means that European banks clearing their trades via CCPs in equivalent jurisdictions can do so without the need for added compliance burdens.

The UK Financial Conduct Authority has continued its relentless pressure on asset managers to come clean about the hidden fees and charges in dealing commissions.

The following data is derived from trading activity on the Tradeweb European-listed ETF platform.

Just twelve months ago, as we turned the corner from 2013 to 2014, it looked like some of the derivatives reform upheaval was starting to subside – at least in the U.S. Final SEF rules had been passed; swaps were being made-available-to-trade; we survived the government shut-down.

I had my doubts about SEFCON 5. I had even told one of the sponsors weeks in advance, tongue in cheek, “SEF’s are live and ticking, what’s there to talk about?” I knew better, and I indeed learned a few things.

In the second quarter, the U.S. GDP expanded at a 4.2% annual rate instead of the 4% rate initially reported, according to the Commerce Department.

Speaking at the Jackson Hole Economic Policy Symposium on Friday 22nd August, ECB President Mario Draghi suggested that the ECB Governing Council may respond to continued low inflation in the Eurozone by easing monetary policy, saying “we stand ready to adjust our policy stance further”.

Swaps Boom in Unintended Consequence of New Curbs on Wall Street (Bloomberg News)

Swaps compression trades reduce line items, clearing fees and margin. But they come at a price. And determining whether they are cost-effective depends on the details.