CurveGlobal...In the news
> Financial Times:
ICAP’s future reflects derivatives market in transition
For banks, the priority is preserving their relationships with customers, says Andrew Ross. He describes the fixed income market as “fundamentally broken,” and one reason why he is now chief executive of CurveGlobal, a new UK interest rate derivatives trading venue. Via clearing, it promises users millions of dollars in savings from margin, capital and funding requirements. “When the market was on borrowed money, who cared? You could fund these silos all day long. Now it’s really challenging if you’re a bank in this space.”
> Financial Times:
LSE and banks set to launch new derivatives exchange
“Tougher post-crisis rules have forced banks to hold millions of dollars against their trades in capital, funding and margin requirements. Trading via CurveGlobal would allow investors to net positions in their portfolios at LCH, the LSE and bank-owned clearing house, reducing those costs.”
> Financial News:
LSE's CurveGlobal comes out fighting on day one
“The other factor is that, unlike NLX, it will have the benefit of cross-margining from day one. LCH’s interest-rate portfolio margining service, called Spider, launched in June and enables clients to offset the margin they hold across over-the-counter instruments and listed interest-rate derivatives.”
London’s Newest Derivatives Exchange Defies Brexit Curveball
“Ross says Curve’s backers aim to cut costs for customers by breaking down the walls between over-the-counter swaps and exchange-traded futures. Customers are forced to hold expensive, redundant clearinghouse capital in separate locations. “Clearly banks are super capital constrained,” said Ross.
LSE Group says interest rate derivatives venture CurveGlobal now live
CurveGlobal, the interest rate derivatives venture developed by LSEG with a number of major dealer banks has gone live […] with access to a deep pool of open risk, totalling over $100 billion in initial margin."
> The Trade:
CurveGlobal boss switches focus to liquidity building
One significant area Ross thinks will attract the buy-side is Curve’s policy of providing free market data, a contentious issue with many asset managers and proprietary firms that believe the incumbent exchanges have a monopolistic hold on market data fees."
LSE Curve sees 500+ lots traded on first day
“The results underline a solid start for the new rates futures market which is challenging larger rivals ICE and Eurex with a combination of cheaper fees and potential savings in the clearing function."
CurveGlobal Expands Portfolio Margining With LCH
“CurveGlobal clients can achieve capital savings through LCH Spider, a portfolio margining tool for interest rate derivatives, which launched in May. Eligible members and clients using LCH’s SwapClear and Listed Rates services can offset margin between over-the-counter and listed interest rate derivatives in order to decrease the combined initial margin they have to pay."