Bank One is setting up a Korean interest rate derivatives business onshore in Seoul, according to officials familiar with the firm. "The bank has been quite active in the asset-backed security market and is now looking at expanding its product range," said one market official familiar with its plans. The firm currently offers foreign exchange derivatives. H. H. Moon, treasurer in Seoul, declined comment.
The firm is setting up the desk so that it can convert dollar-based fixed income products into won using cross-currency interest-rate swaps. Bank One will hire traders for the desk, according to the official.
Last year several international houses including Merrill Lynch (DW, 10/27), Lehman Brothers (DW, 2/17/02) and Barclays Capital (1/15/02) established onshore derivatives operations in Korea.
