UBS is considering re-establishing an onshore interest rate derivatives operation for Brazil, potentially before the end of next year. "We've been cautiously looking at this," said Joonkee Hong, global head of emerging market derivatives in New York. It will likely wait until the economic outlook improves, which Hong is expects next year.
"It would be very easy for us to re-start," noted Hong. The firm already has a license because it had an onshore desk prior to the Swiss Bank Corp. and Union Bank of Switzerland merger in 1998. If UBS decides to go ahead with the plan, it will look to hire traders for the effort, added Hong.
Additionally, UBS is readying its trading effort for Mexican peso derivatives, which it started preparing for earlier this summer (DW, 9/18). "We'll start trading in the New Year," said Ron Goldshmidt, director in the emerging markets group in Stamford, Conn.