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derivatives

Latest Headlines

Latest Headlines

The future of NYSE Euronext

At NYSE Euronext, the question is: What now? It invested so much--some might say it bet the farm--on inking a deal with Deutsche Bourse, that it must now fight the perception that it is merely listing. To be sure, the top executives always knew the fight would be difficult, but deep down they

Regulation opposition highlights economic analysis

It was big news in July when an appellate panel struck down the Dodd-Frank requirement that companies comply with new proxy access rules. The reasoning was even more interesting. The judges struck

Counterparties reassess risk of derivatives

You could sense the fear over big U.S. banks just recently, as the European debt crisis heated up and concerns mounted about just how exposed banks were. Stocks tanked yet again, taking prices well below book value, and CDS spreads widened precipitously. And that got a lot of big companies worryin

Synthetic ETFs under scrutiny abroad

One the surface, it looked like the SEC made a wise decision back in 2010 when it ostensibly halted the launch of exchanged-traded funds that invest heavily in derivatives. These so-called synthetic ETFs were all the rage in Europe, but the SEC said it wanted more time to study the issues in t

Fomer Goldman Sachs employee charged with insider trading

In an interesting civil action, the SEC has charged a former Goldman Sachs trader with insider trading, alleging that he tipped of his father to some impending ETF re-balancing activity that allowed them to generate a roughly $57,000 illicit profit. The trades were made in the name of another fami

Can Dodd-Frank create jobs?

We used to joke about the Sarbanes-Oxley Act as something akin to a full employment act for accountants. It created lots of jobs without a doubt. Now comes Dodd-Frank, and some are calling it a

Delta One desks, ETFs and the UBS fiasco

Both Kweku Adoboli, the UBS trader who was arrested for his role in the latest European rogue trading scandal, and before him Jérôme Kerviel, the Société Générale rogue responsible for $6.8 billion in losses in 2008, worked on Delta One desks, which have thrived in this Golden Era of exchange trad

SEFs consolidation coming already

As the new Dodd Frank-created derivatives market was discussed, it soon became clear that just about every market participant out there wanted to become a swap execution facility (SEF), which struck

Allstate sues Goldman Sachs

Is the legal pile-on just now starting? We're certainly seeing more big investors in MBSs and the derivatives built on those MBSs filing lawsuits against big banks. The latest was Allstate, which has just sued Goldman Sachs, saying the gilded bank sold it roughly $120 million worth of MBSs tha

Goldman Sachs' move to cut risk may not be just a blip

Reuters reports that more than a dozen Goldman Sachs government bond and derivatives traders have resigned recently to join other companies, as Goldman Sachs seem to be prizing the sales staff over the traders. Brian Mooney, an interest-rate derivatives trader who spent 22 years at Goldman