ING Financial Markets is planning to put itself back on the equity derivatives map in Asia by re-establishing a desk in Hong Kong in the coming months, according to market officials. "They're coming back into the market," noted one official, adding that ING had pulled the plug on its equity operation during the Asian financial crisis.
To lead the effort, ING has hired Trinh Du, executive director of equity derivatives trading at Goldman Sachs in Hong Kong, as head of structured and listed equity derivatives, according to officials familiar with the move. Du, who left Goldman recently, is said to start in July, but could not be reached for comment.
"I'm amazed," said one equity derivatives head in Hong Kong. "They're coming back into the game rather late," he added. However, he noted that Du is a well-known and experienced trader and could make a success of the business if he is fully backed by ING. "They must have a big checkbook," he mused.
"Trinh's a good guy," noted an equity derivatives trader. "They have a decent chance of carving out a niche." He continued that for ING to succeed, "it depends upon their commitment, not just the people," noting that it may take time for the firm to turn it into a profitable operation. A marketer in Hong Kong said that ING will need a "bigger risk appetite [than its competitors]" in order to steal market share, adding, "most players in Asia are relatively conservative."
However, another equity head questioned ING's chances: "there's room for less, not more." He noted that several firms, such as Dresdner Kleinwort Wasserstein cut operations in non-Japan Asia last year (DW, 8/5) due to tough market conditions.
Fidelma Ryan, ING spokeswoman in Hong Kong, declined comment.
