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Asian buyers driving callable SSA market have resurfaced in public benchmark deals
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SSA
New contracts cannot yet be traded in US
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  • Hedge funds have been buying up one-week calls on the euro against the Swiss franc this morning, anticipating the Swiss National Bank will decide tomorrow to prevent a further appreciation in the franc but that the effort may flounder ultimately.
  • Werner Langen, member of the European Parliament’s Economic and Monetary Affairs Committee, on Monday called for regulation of over-the-counter derivatives to distinguish between financial and non-financial institutions, with the former being more tightly regulated.
  • Standard Chartered is advising investors to pocket one-year USD put/HKD calls struck at HKD7.75 to capitalize on low implied volatility on the currency pair, which is now around 0.74%. Last November, implied vol was around 1.3%.
  • Private banking group EFG International is looking to expand its Asia structured products platform under its subsidiary EFG Financial Products.
  • Regulators want to see a tape for capturing post-trade information on over-the-counter derivatives, akin to what is used in the equity markets.
  • The two senators charged with drafting proposed rules to regulate over-the-counter derivatives are said to be sparring over possible exemptions to a law that would require standardized derivatives to be trade through a clearing house.