Sunday 2nd August 2015
NEWS TICKER, FRIDAY, JULY 31ST: US bond markets expect a $900m issue from the Metropolitan St. Louis Sewer District as early as next year after its rate commission voted yesterday to back the district’s plan to tap the markets. The bonds will continue financing a $4.7bn capital program required by the Environmental Protection Agency (EPA) to keep sewers in St. Louis and St. Louis County from regularly overflowing into area creeks and rivers. Already, the district has put $600m toward sewer projects in St. Louis and St. Louis County. MSD customers can consequently continue to expect annual sewer bill hikes each summer. In 2012, the average customer paid $29 monthly. This month, bills rose to an average of $41. After this bond issue, the monthly sewer bill will cost the average household $61 by 2019 - JP Morgan has hired Lebo Moropa, giving the bank its first dedicated prime brokerage and equity finance presence in South Africa, reports Securities Lending Times. Former HSBC trader Moropa has joined the bank in Johannesburg and will focus on synthetic and cash prime brokerage and securities lending, including delta one and will report to Paul Farrell in London. Moropa was a delta one trader at HSBC and has worked for JP Morgan before– Apulia Finance has informed the Luxembourg Stock Exchange of its intent to issue a securitised paper, backed by residential mortgage loans originated by Banca Apulia. The issue date is August 6th and the deal is lead managed by BNP Paribas who is also joint arranger with Finanziaria Internazionale Securitisation Group. Swap counterparty in the transaction is Canadian Imperial Bank of Canada and the clearers are Euroclear and Clearstream. Funding is at three month Euribor with a spread of 0.40% before the step up date and 0.80% after the step up date. The deal is worth a combined €170m of which €153m are Class A asset backed floating rate notes due 2043; €6.79m Class B asset backed notes and €9,84m are Class C asset backed floating rate notes – all due 2043.

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Hong Kong’s OTC Clear to welcome US clearing members

Friday, 09 May 2014
Hong Kong’s OTC Clear to welcome US clearing members OTC Clear, a subsidiary of Hong Kong Exchanges and Clearing (HKEx) will begin to offer its OTC derivatives clearing services to US clearing members, after receiving no-action relief from the US Commodity Futures Trading Commission (CFTC).  http://www.ftseglobalmarkets.com/

OTC Clear, a subsidiary of Hong Kong Exchanges and Clearing (HKEx) will begin to offer its OTC derivatives clearing services to US clearing members, after receiving no-action relief from the US Commodity Futures Trading Commission (CFTC). 

The go-ahead covers clearing of propriety trading by US members that involves interest rate swaps, denominated in Hong Kong dollars, renminbi (RMB), US dollars and euros, as well as non-deliverable currency forwards, denominated in RMB, Taiwan dollars, Korean won and Indian rupee.

The no-action letter is effective immediately until the earlier of December 31st 2014 or the date when the CFTC registers OTC Clear as a derivatives clearing organisation (DCO) or exempts it from registration.



"We are very pleased to receive the no-action relief from the CFTC because it will allow us to admit our US founding shareholders and other eligible US persons as clearing members," says Calvin Tai, HKEx's Head of Global Clearing (Asia).  "Our US founding shareholders have a significant role in the OTC derivatives market so this is a very important step forward for OTC Clear, which is a key part of our strategy to establish a strong fixed income and currency business as we expand into more asset classes.

"OTC Clear has also submitted an application to the European Securities and Markets Authority (ESMA) to seek regulatory recognition that will allow the clearing house to accept financial institutions incorporated in the European Union as its clearing members," Mr Tai said.

Two of OTC Clear's 12 founding shareholders are affiliates of US banks.  The founding shareholders together hold 25% of OTC Clear’s shares and HKEx holds the remaining 75%. 

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