Two equity derivatives staff including Harry Krkalo, equity derivatives marketer, have recently transferred and the remaining two team staffers in Sydney will soon join them, according to Schalk. "There's stronger retail distribution for us in Asia--we've got clients harassing us to provide pricing and products," said Krkalo, noting that fund products structured with exotic options have proved popular in Singapore and Hong Kong. As part of the disengagement from Australia SG sold its installment warrants book to UBS at the onset of the year.
An equity derivatives head at a bulge bracket house said SG had built a strong warrant franchise in Australia in recent years. "They've been in the top three for a couple of years," he added. The French bank also offers option-linked products and it is in these instruments that rivals speculated it may have had difficulty competing against full-service houses that also provide research and cash equity trading amid falling margins. "Australia is a mature and highly competitive market--they may have found better margins in other markets in the region," he continued.
