Merrill Lynch is making another push into the Japanese equity derivatives market and has transferred responsibility for the desk back to Tokyo. Yasuhiro Fujiwara, former head of equity capital markets in Tokyo, has assumed control of the desk. Merrill scaled back its commitment to the Japanese equity derivatives market at the beginning of the year and moved management of the operation to Hong Kong because of the dismal outlook for the Japanese market. Fujiwara declined comment.
The recent turnaround in the Nikkei suggests the good times are on the way back and as a result, Merrill has decided to relocate three Hong Kong-based traders to Tokyo. It will also make a few hires for the desk, according to firm officials.
In the reorganization in January, responsibility for the Japanese equity derivatives group was handed to James Rodríguez de Castro, managing director in global equity-linked products in Hong Kong. Rodríguez de Castro is now heading equity derivatives structuring in addition to his head of trading role for Asia ex-Japan. He confirmed the appointment but declined further comment.
Last year several firms pulled back from Japan but this year has seen the highest derivatives volumes since 2000's record numbers and equity houses are starting to come back (DW, 9/15). The Nikkei 225 has risen some 40% since April.
Some Merrill watchers pointed to the promotions of former Asian heads Brent Clapacs, former head of equity trading for the Pacific Rim in Hong Kong, and Simon Brookhouse, former head of equities for the Pacific Rim in Hong Kong, to senior global roles as the reason the firm is now paying so much attention to the region. Clapacs is now head of the global equity structured products group in New York (DW, 1/19) and Brookhouse is global head of the equity-linked group in London (DW, 9/14).
