Derivs - Credit

Extraterritoriality poses the risk interdealer brokers will have to register the same trading platform in different jurisdictions or develop different platforms for each, according to Scott Fitzpatrick, director of client relations for Europe, the Middle East and Africa for GFI Group in London, at a breakfast briefing this morning.

Paul Lewitt, Lloyds TSB’s London-based head of credit trading, has recently left the firm.

Arran Rowsell, managing director and head of European flow credit trading at Credit Suisse in London, has left the firm.

Issuing new structured products in Europe would become more expensive and time consuming under rules proposed by the European Securities and Markets Authority.

Thursday saw Jean-Claude Trichet chair his last monetary policy meeting as the president of the European Central Bank, having held the post since Nov. 2003 and steering the ECB through the worst crisis to hit Europe since World War II.

Derrick Herndon, head of European flow credit at UBS in London, has left the firm.

NASDAQ OMX plans to switch to calculating margins for fixed income derivatives using a yield curve approach, which may reduce cross-margin amounts 25-50%.

Morgan Stanley last week sold USD121 million of medium term fixed-to-floating rate notes linked to three-month Libor with no cap on the upside--a high notional for a retail product.

Royal Bank of Scotland analysts are recommending selling protection on public sector corporates while buying protection on the iTraxx Main.

The International Swaps and Derivatives Association has called on the Japanese Financial Services Agency to ensure clearing requirements for derivative transactions, particularly those that are cross-border, be consistent with regulation in overseas countries when it implements its Financial Instruments and Exchange Act.

The Royal Bank of Scotland has issued a multi-asset note unique for paying out the best return of three strategies and including a 50% allocation to inflationary assets such as gold and other commodities.

The Bank for International Settlements’ Basel Committee will in the next two to three weeks issue a final consultation on the capitalization of dealers’ exposures to a central counterparty’s default fund.