ICE Clear Europe Announces Successful Launch of European CDS Client Clearing; Five Clients Active on Day One
President Barack Obama said Tuesday that he won’t talk to his opponents until government is reopened and the debt limit is raised. House Speaker John Boehner meanwhile said at a afternoon press conference that Obama was demanding “unconditional surrender” from Republicans. “The negativity in the markets is likely to continue today as investors lose confidence that a deal will be reached before the mid-October deadline,” said Lee Mumford, financial sales trader at Spreadex, in a note. Among heavyweights for the Stoxx 600 index, food giant Nestle SA (NSRGY) was off 0.8%, while Sanofi SA ( SNY ) dropped 0.8%. Assa Abloy AB fell more than 1%. Downgrades hit French stocks. Compagnie de Saint-Goban SA fell 3.7% after Morgan Stanley cut shares to underweight from equal weight, saying “muted earnings upgrades and rising headwinds indicate expectations could fall”. And shares of Air Liquide SA were down 1% after Credit Suisse cut shares to neutral from outperform, saying foreign-exchange headwinds will likely hit the company’s third quarter results. The French CAC 40 index lost 0.3% to 4,122.95. Some banks were gaining across Europe though, and in Paris, BNP Paribas SA rose 1.2% and Societe Generale SA gained 1.6%. Bigger losses were seen in London, where the FTSE 100 index fell 0.4% to 6,337.52, dragged on by a nearly 1% fall for Royal Dutch Shell PLC (RDSA) . Insurer Prudential PLC slid 1.2%. The German DAX 30 index lost 0.2% to 8,543.18, led by a more than 1% drop for Siemens AG ( SI ) and a 1.5% fall for Munich Re .
“Citi is very pleased to have partnered with Lombard Odier Investment Managers today in clearing some of the first client iTraxx positions at ICE Clear Europe. Citi is dedicated to offering the latest in OTC clearing solutions to our clients, and we look forward to continuing to work with ICE as mandatory clearing is rolled out in Europe,” said Silas Findley, Managing Director, Head of OTC Clearing for Europe, Middle East, and Africa at Citi. “J.P. Morgan is pleased to be one of the first clearing members to complete a client cleared trade on ICE Clear Europe’s CDS platform. This is a significant step forward for providing access to client clearing of credit default swaps in the European Market and a template as we build towards mandatory clearing under EMIR,” said Hester Serafini, global co-head of OTC Clearing at J.P. Morgan. In the U.S., ICE Clear Credit commenced client clearing in 2009 and has cleared U.S. $2.6 trillion in gross notional value for 301 clients to date. Globally, ICE has cleared 1.45 million CDS trades in the aggregate, totalling U.S. $44.8 trillion in gross notional value CDS instruments. Open interest stood at $1.5 trillion at September 27, 2013. ICE Clear Europe’s client clearing solution provides global OTC clearing expertise, an industry-leading risk management model, real-time clearing for index and single name CDS and enhanced position and margin portability. The ICE CDS clearing houses also have independent governance and the world’s largest dedicated default funds for CDS. ICE has established risk frameworks for the clearing of CDS that are separate from its futures markets, including independent risk models, guaranty funds and margin accounts, as well as a CDS-focused risk management system. The client clearing solution permits firms to retain important trading and contractual relationships, including accepting transactions from a range of competitive existing execution models. As the leading middleware and connectivity provider for CDS execution, ICE Link connects dealers, inter-dealer brokers and over 790 buy-side firms, enabling product standardisation and integrated post-trade processing.
Diesel Flow to Europe to Cap Winter Price Surge
(CNN) — The events unfolding off the coast of Lampedusa are both tragic and shocking . More than a hundred people are confirmed dead and the death toll is almost certain to rise dramatically. Although it may be awful, sadly this is neither an unusual nor unfamiliar story. According to the UNHCR, in 2012, some 15,000 migrants and asylum-seekers reached Italy and Malta and almost 500 people were reported dead or missing at sea. The figures are damning and shameful. Too many people are dying in their attempts to reach safety in Europe and much more needs to be done to address the root causes of why people risk their lives in this way. One thing is clear — this latest incident is an appalling reminder of what happens when people escaping persecution are denied access to safety at the EU’s frontiers. While we don’t know the personal circumstances of everyone on board this particular boat, we do know that the majority were from Somalia and Eritrea, two of the top 10 sources of refugees in the world, according to the UNHCR. Both are countries with well documented human rights abuses. Dozens dead in Italian boat accident Given this, it’s reasonable to believe that a number of people on board were refugees, fleeing persecution and seeking safety in Europe where there are substantial and settled Somali and Eritrean communities. Yet there’s been considerable head scratching in the media about why people would put themselves at such risk. Why would you get on an overcrowded, potentially unseaworthy vessel and risk your life to make it to Lampedusa? For refugees, the answer is simple — what they’re leaving behind is much, much worse.
The European economy appears to be going through a recovery, which should result in some stronger consumption demand, he said Sept. 19. A jump in European demand may entice local refiners to boost output, limiting imports from the U.S., Vienna-based researcher JBC Energy GmbH said in an Oct. 7 note. Low Inventories Inventories of gasoil, including heating oil and diesel, in independent storage in Europes oil trading hub of Amsterdam-Rotterdam-Antwerp dropped to 2.01 million tons for the week to Oct. 3, the lowest for this time of year since at least 2007, according to PJK International BV, a Netherlands-based researcher. The winter diesel market in Europe could be quite good as an export destination based on current stockpiles, Reliance Chief Executive Officer Tony Fountain said at a conference in London on Oct. 2. Mumbai-based Reliance operates the worlds largest refining complex. Refiners in the region arent likely to boost processing following seasonal maintenance because ample diesel imports are set to cap their profit margins, Gemma Parker, an analyst at Facts Global Energy in London, said by phone Sept. 27.