Japanese derivatives giant Bank of Tokyo-Mitsubishi is preparing to transfer its credit derivatives group to its securities subsidiary in order to merge its fixed income cash and derivatives operations. The move is designed to increase the bank's ability to exploit arbitrage opportunities between the instruments, as well as offer a wider range of products, according to Nobukazu Saeki, senior manager of the derivative and structured products division at BoTM in Tokyo.
Saeki and two traders will move to Mitsubishi Securities and work alongside the 150-plus fixed income group in the coming months. Additionally, Saeki noted that once established, the group will begin looking at offering more products, including combinations of equity and credit risks.
