Rabobank International is planning to set up an equity derivatives operation in Asia next year. A firm official said the desk will be in Singapore, but declined further comment. Rabo has previously traded equity derivatives out of Japan, but closed its securities operation in Tokyo two years ago.
A rival equity derivatives head said the move makes sense as margins in the cash market are narrowing. Another trader said, "I wish them luck but this goes against the trend," referring to several firms, including Bank of America, Barclays Capital Asia and Dresdner Kleinwort Wasserstein, moving out of Asia. However, earlier this year, Dutch rival ING Financial Markets reentered the arena with a desk in Hong Kong (DW, 5/26). The firm had withdrawn during the Asian crisis.
