In other People Moves, CME Group has filled a top FX post while ITG reports the return of a key player.
ISDA Designates Groups to Oversee Credit Events
The International Swaps and Derivatives Association, Inc. (ISDA) has reported the 2016 composition of its five regional determinations committees (DCs), which are responsible for determining whether a “credit event” has occurred in the derivatives market.
The ISDA defines a credit event as either a bankruptcy, an obligation acceleration, an obligation default, a failure to pay, a repudiation/moratorium, or a restructuring.
The DCs each consist of 10 sell-side and five buy-side voting firms, alongside three consultative firms and central counterparty observer members, and exist in Americas, Asia excluding Japan, Australia-New Zealand, EMEA (Europe) and Japan, the ISDA says.
The role of DC “is to apply the terms of market-standard credit derivatives contracts to specific cases,” according to ISDA. The DCs then make factual determinations on credit events, successor reference entities and other issues, “based on information provided to the DCs by credit default swap (CDS) market participants.”
The DCs are also responsible for determining whether a CDS auction should be held following a credit event, which are determined according to extensive determination committee rules. The ISDA’s 130-page rules document is available on its website at: http://bit.ly/23i3XDg
ISDA itself acts as a non-voting secretary to each DC.
The following firms will serve on the 2016 DCs:
Voting Dealers (for all regions)
Bank of America
Barclays Bank
BNP Paribas Citibank
Credit Suisse
Deutsche Bank
Goldman Sachs
JPMorgan Chase Bank
Mizuho Securities Co.
Morgan Stanley & Co.
Consultative Dealer (for all regions)
Société Générale
Voting Non-Dealers (for all regions)
AllianceBernstein L.P.
BlueMountain Capital Management, LLC
Cyrus Capital Partners, L.P.
Citadel LLC
Elliott Management Corp. (effective July 30, 2016, and will serve as Consultative Non- Dealer April 29, 2016 to July 29, 2016)
Consultative Non-Dealer (for all regions)
Pacific Investment Management Company (Pimco) (effective July 30, 2016, and will serve as Voting Non-Dealer April 29, 2016 to July 29, 2016)
CME Group Picks Global Head of FX
CME Group, the derivatives marketplace, reports the appointment of Paul Houston as executive director, global head of foreign exchange (FX).
Houston, who will be responsible for leading the development, execution and management of the exchange’s FX business, will report to Sean Tully, senior managing director, financial and over-the-counter (OTC) products. He will be based in London.
Houston joins from Deutsche Bank in London, where he was head of FX and fixed income prime brokerage and listed derivatives client solutions in Europe, Middle East and Africa. “In that role, he delivered a range of FX, OTC rates and credit clearing, listed derivatives clearing and execution products and services to institutional clients including hedge funds, asset managers and banks,” according to a CME statement, which notes also that, before joining Deutsche Bank, “Houston ran global FX and fixed income prime brokerage teams at a number of banks including Credit Suisse, RBS and JP Morgan Chase in London and New York.”
ITG Names Posit Alert Head
ITG, a broker and financial technology provider also known as the Investment Technology Group, reports that Andrew J. Larkin will be rejoining the firm as managing director in charge of its Posit Alert client coverage.
He joined Bloomberg in 2013, after two decades at ITG, during which time he opened ITG’s first office in Europe, and worked in a number of different capacities, New York-headquartered ITG says.
Posit Alert is an “indications-based facility that seeks out crossing opportunities among participating clients,” ITG says in a statement.
Larkin will report to Jamie Selway, ITG managing director and head of electronic brokerage. The Posit crossing network launched in 1987, per ITG.
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