General Re Financial Products (Japan) Inc. has hired Rick Puglisi, an interest-rate options trader at Lehman Brothers in Tokyo, as head of fixed income and structured products trading in Tokyo. Puglisi said the move provides a great opportunity, declining further comment.
Naoki Inoue, managing director, said Gen Re hired Puglisi because it required a capable individual to handle the long-dated and complicated structures that the firm trades. Gen Re is trying to grow its derivatives business in Japan, he added, noting that the firm is now registered as a securities dealer and will launch equity and security related derivatives business, such as credit derivatives, on April 2. Gen Re was previously only able to conduct fx and interest-rate derivatives business in Japan.
Inoue believes Japan's low interest rate environment will boost demand for structured products. Puglisi replaces Atsuchi Shinomiya, who has left the firm to pursue other interests.
Philippe Avril, business manager at Commerz Securities, said Gen Re could be a competitive player in equity derivatives if the company is flexible and capable of offering the right products at the right time. He added that there is a lot of demand in Japan for such products.
