Derivs - Credit

Greater clarity is needed on rules for hedging and collateral from the European Securities and Markets Authority.

Avril Pomper, managing director and head of European fixed income, currency and financial products distribution at the Royal Bank of Canada in London, has left the firm.

Application of regulatory requirements across borders is one of the most important issues that still need to be death with, according to David Lawton, acting director of markets at the Financial Services Authority.

Australia’s approach to mandatory clearing of over-the-counter derivatives will make it difficult to establish a domestic clearinghouse, moving clearing of Australian derivatives offshore and limiting the ability of local regulators to manage risk, according to industry officials.

Emmanuel Duclos, managaing director and head of European credit sales at UBS in Paris, has left the firm.

The credit default swap IMM roll on June 20, as well as the anticipation around the U.S. Federal Reserve decision made the same day, meant that it was hard to draw too much from CDS market movements this week. But that’s not to say it was without incident.

Institutional and private bank investors in Asia are increasingly looking to invest in synthetic exchange-traded funds domiciled in Europe that reference alternative strategies or assets classes other than cash and equity.

Société Générale strategists are advising clients to buy USD10 million South Korea credit default swaps at 127 basis points and sell USD6 million Asia ex- Japan Itraxx CDS at 188 bps to hedge against a possible downturn in the Korean equity market.

Nitin Jain is leaving as co-head of fixed income for India at Nomura Holdings to become managing director and head of India fixed income at UBS.

The opening of China’s corporate bond market to private placements could prove a positive development for credit default swaps there, as players will be able to price more easily credit not linked to state-owned enterprises.

Morgan Stanley has named Salvatore Orlacchio as head of European fixed-income sales, succeeding Darragh McCarthy, who has left the investment bank.

Deutsche Bank has won three awards in the 2012 Global Derivatives Awards, including Global Derivatives House of the Year. Nomura and UBS each earned two nods, in the annual awards for excellence as judged by the edit staff of Derivatives Week/Derivatives Intelligence.