Salomon Smith Barney is adding an offshore equity derivatives trading desk for India to its Hong Kong office and Morgan Stanley is looking at setting up a similar operation. Salomon's desk will offer market-access products, which give offshore players participation in onshore products via over-the-counter transactions, targeting such instruments as forwards, equity options and swaps as well as proprietary and customer strategies for India, according to Justin Kennedy, managing director of Asia Pacific equity derivatives in Hong Kong.
An official at Morgan Stanley in Hong Kong said the firm is looking into this and would likely leverage its joint venture in Mumbai, JM Morgan Stanley, but he declined further comment.
Salomon has hired Nikhil Nagle, trader at ICICI Bank in Mumbai, for the effort. Nagle, who was on gardening leave and could not be reached for comment, will report to Kennedy when he starts in the coming weeks. No additional hires for the desk are imminent, said Kennedy.
"This is where our customers are going," said Kennedy, noting the growing interest in India's equity market. He added, "We look to follow our customers."
