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China-focused pulp futures due to be opened to offshore participants early next year reflect demand from western traders for contracts that reflect import pricing, according to dry bulk freight and commodity futures inter-dealer broker Freight Investor Services (FIS). According to Fish, SHFE pulp futures contracts have easily traded in larger volumes than physical flows since their introduction, reflecting the potential of the domestic market. [Extracted from the article]

The International Swaps and Derivatives Association (Isda) has said its interest rate derivatives definitions platform due to launch later this year will help reduce the industry's reliance on paper documents. Overhauling Isda's 2006 interest rate derivatives definitions removes the need to continually publish supplements to reflect changes, O'Malia said. O'Malia said the interest rate derivatives definitions overhaul is the latest in a series of solutions that aim to deliver a more robust, automated and digital post-trade infrastructure. [Extracted from the article]

Emir reporting not "fit for purpose" in ETDs - FIA The Futures Industry Association (FIA) has said the European Market Infrastructure Regulation (Emir) reporting regime is not fit for purpose when it comes to exchange-traded derivatives (ETDs). The FIA also suggested that regulators adopt a position-level reporting regime to more accurately reflect the standardised nature of ETD contracts. [Extracted from the article]

Cybersecurity requires sector-wide coordination - DTCC The Depository Trust & Clearing Corporation (DTCC) says the global financial system must undergo a paradigm shift in order to combat the growing risks from cyber-attackers. In a forward, Dan Thieke, managing director of business risk & resilience management wrote: "Resilience initiatives should look holistically at threats and aim to safeguard critical business services against a wide range of technical, physical, logical or financial disruptions". [Extracted from the article]

The article reports on the support expressed by the Australian Securities and Investments Commission to the proposals of Commodity Futures Trading Commission chairman Chris Giancarlo for cross-border reform, especially to the regime for swaps execution facilities.

The article focuses on the opportunities posed by commodities to investors and lack of understanding about the asset. One reason behind the confusion over commodities is that transactions do not mean that the investor actually delivers a tangible commodity. In contrast to equities which are indicator of recession, return of commodity futures return is linked to the inventory levels of the economy. Investors say that another advantage of commodity futures is it offers protection from inflation.

The potential closure of the London Metal Exchange's (LME) open outcry trading ring could risk its unique date structure model and open the exchange to greater competition from the Shanghai International Energy Exchange (INE) and CME Group's COMEX, according to the chief executive of Sucden Financial, a Category 1 LME member. Bailey was commenting after LME said it would consult on permanently closing its iconic trading ring as part of a suite of proposals designed to modernise the metals market. [Extracted from the article]

LME proposes closure of "treasured" trading ring The London Metal Exchange is to consult on permanently closing its historic trading ring, the last open outcry ring in London, as part of a suite of proposals designed to modernise the metals market. "The LME believes it is the right time to consider the permanent closure of the ring and a move to an electronic pricing structure", LME said in a statement on Tuesday. [Extracted from the article]

In light of Covid-19, it remains unclear as to whether outsourcing operations will increase, or if firms will look to bring operations in-house. "I see a potential spike of outsourcing trading operations in middle and smaller operations", commented Hodge. However, Hodge added that with asset owners, there is a tendency to bring operations in-house which is mainly driven by costs, whereas there is more outsourcing going on with asset managers. [Extracted from the article]

The Financial Stability Board has said the derivatives and securities markets have made "good progress" in their transition away from Libor but the migration in the lending markets "needs to accelerate". Global regulators including the FSB have agreed that Libor will be discontinued as a reference rate for lending from the end of 2021. [Extracted from the article]

LCH has reiterated that membership criteria is the first line of defence for clearing houses as it outlined its approach to risk management. As issues like CCP recovery and resolution measures, including skin-in-the-game (SITG), are being explored at international level, LCH points out that its SITG is set at a level which ensures the interests of CCP management are aligned with those of clearing members. [Extracted from the article]

Deference could curb fragmentation consequences - FSB The Financial Stability Board (FSB) said it will explore the need for more clarity on deference measures as a means to address market fragmentation, while location policies are a last resort. In a report published on Tuesday, the FSB said further clarity on deference and recognition policies in derivatives markets could help to curb the consequences of market fragmentation. [Extracted from the article]

The Commodity Futures Trading Commission's (CFTC) international affairs head Eric Pan is the latest to leave as the commission prepares for a new leader. Prior to joining the CFTC, Pan spent five years at the Securities and Exchange Commission's office of international affairs where he oversaw international regulatory policy. [Extracted from the article]

The article reports on the statements made by Commodity Futures Trading Commission chairman Chris Giancarlo on the regulator's equivalence decision with Great Britain after Brexit.

The article reports on the views of Alex Lamb, head of marketing at The Technancial Co., about the opposition of Commodity Futures Trading Commission chairman Christopher Giancarlo to the European regulator's proposal to increase oversight of U.S. firms.

The article reports on the concern expressed by Commodity Futures Trading Commission (CFTC) chairman Christopher Giancarlo over planned reforms to European Market Infrastructure Regulation (Emir). Giancarlo expresses his objection to the proposed amendments to Emir, describing them as unprecedented and wholly unacceptable. A range of actions have been outlined by Giancarlo that could have a negative impact, such as the regime to withdraw exemptions in overseas jurisdictions.