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New contracts cannot yet be traded in US
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  • The U.K.’s Financial Services Authority has been lobbying members of the European Parliament against restricting or banning naked sovereign credit default swaps.
  • Derivatives legislation in Europe should create a transparent system of clearing that would prevent exchange-owned central counterparties to operate “vertical silo” models and develop a so-called vertical silo market, according to Sharon Bowles, chair of the European Parliament’s Economic Monetary Affairs Committee and shadow rapporteur on derivatives legislation.
  • Royal Bank of Scotland strategists are recommending zero-cost risk reversals, which involve buying a put at a lower strike and a call at a higher strike, on several Asian industries due to flattened skew.
  • BNP Paribas has hired Joe Abbatiello as director in sales across equity derivatives and cash for event-driven clients based in New York.
  • A euro/U.S. dollar European digital put option with a notional of around EUR500 million expired this morning at 10:00 a.m. EST, prompting market players to sell the single currency with an expectation that the pair would break USD1.30.
  • The Chicago Board Options Exchange has announced that for the first time it will apply its volatility index methodology to options on individual stocks.