Merrill Lynch has launched its onshore equity derivatives effort in Korea after receiving a full derivatives license late last year. For the effort, the firm has transferred staff to Seoul and has established an equity derivatives trading desk. The firm has been trading fx and interest-rate trading onshore in Korea since 2004 but a full license allows it to offer equity derivatives (DW, 9/9).
Merrill insiders said the firm has become a liquidity provider for the nascent warrants market, following Credit Suisse which was the first foreign entrant last year (DW, 12/9). Additionally, Merrill is structuring equity-linked notes which are distributed by domestic securities houses. Following the firm's first ELN deal a few weeks ago, Merrill is preparing to structure a second tranche for distribution next week, according to officials. Mark Tsang, spokesman in Hong Kong, did not return messages by press time.
