Adam Friedman, managing director, equity derivatives marketing to corporates at Bear Stearns in New York, has taken the new position of director, equity derivatives structuring for U.S. and Latin America at Scotia Capital in New York. Friedman worked at Bear Stearns for approximately two weeks before moving over to Scotia--he had previously covered corporates at J.P. Morgan, coming from the Chase Manhattan side of the merged entity.
Several market officials speculated that Friedman joined Scotia because its client platform was more similar to the client base he developed at Chase--corporates with which the bank has lending relationships. The client platform at Bear Stearns is different, they noted, which is perhaps why it was not a good fit for Friedman.
The downward trending U.S. stock markets still provide opportunities for equity derivatives, according to Barry Delman, managing director, head of interest-rate, credit, and equity derivatives sales for the U.S. and Latin America at Scotia Capital in New York. As equities get cheaper, more corporates sell puts as part of buyback programs when they think the market may be close to reaching a floor (DW, 3/18). They also increase their activity in equity forwards as part of share buyback programs. This constitutes a large portion of the bank's corporate equity derivatives business. Friedman declined comment via Delman.
The bank is looking to add in the near term an attorney in New York to help with tax structures and securities law issues, he added. With recent accounting changes, and general market evolution, the bank has been dealing with increasingly complicated equity derivatives structures that require legal expertise, said Delman.
Friedman reports to Delman and to Chris Purkis, managing director and head of equity derivatives trading in Toronto.
