Interest Rate Swaps made easy – What You Should Know

An Interest Rate Swap (IRS) is a financial derivative that is widely traded. This blog defines an interest rate swap and its practical uses. Why the parties involved would choose to carry out an IRS. What the possible risks of an interest rate swap are. About the Author Jake is 17 years old and studying […]

Have You Seen This 60% Decrease In RUB Derivatives?

We run through activity in RUB Rates, CDS and FX markets. Data shows that CDS markets are continuing to trade, with 25-30 cleared trades every day. Risk is reducing, with Notional Outstanding in CDS reducing most days. RUB NDFs have seen Notional Outstanding reduce by 60% recently. RUB IRS Markets To start with, I will […]

RUB Derivatives Are Still Trading

Derivatives transparency allows us to monitor the continuing activity in RUB markets. Interest Rate Swap activity in RUB spiked in response to the central bank action this week. And Russia is a component of the CDX.EM CDS index, where trading continues despite huge event risks. FX markets are a little more opaque, but we see […]

Big Volumes In Credit And Inflation Plus European Equivalence

CDS index products are seeing unusually high trading activity. Inflation swaps have also seen significant volumes. These are two hot topics for market participants to monitor. Europe has also extended equivalence for non-European CCPs for another 3 years. There is now a consultation to understand which regulatory actions can most effectively move clearing activity to […]

Deciphering the end of LIBOR in the data

The final cessation of GBP, JPY and CHF LIBOR will have some impacts on transparency data across our Clarus data. Here are some of the more obvious ones to highlight. We are sure that more will become apparent over the coming weeks: IRS Have Disappeared The most stark representation of the cessation of LIBOR comes […]

There Are Now Over 1,000 Clarus Blog Posts!

The Clarus blog has recently published its 1,000th blog. We run through our early blog posts and highlight some of our most popular posts. The blog had over 500,000 page views in 2020. We are looking forward to the next 500,000. I realised a little too late last week that we have just gone over […]

Mechanics and Definitions of RFR Cross Currency Swaps

Cross Currency Swaps exchange a funding position in one currency for a funding position in another currency. Markets have transitioned to trading RFR vs RFR since September 21st 2021 in three major currency pairs. The interbank market continues to trade a resettable floating-floating swap, incorporating a USD cash payment to reset the mark-to-market close to […]

What Is The Outlook for Trading Volumes From Here?

Clarus CCPView provides insight into volumes across Swaps, Bonds and Futures. We look at the evolution of volumes in different parts of the yield curve. H2 2021 saw some extremely large volumes, with certain tenors showing more activity than in March 2020. Are these elevated volumes here to stay? CCPView includes volumes covering Swaps (OTC […]