Derivs - Credit

The European Council failed to agree on the Hungarian presidency’s latest compromise on the short-selling and naked credit default swap regulation in a meeting yesterday.

Paris-based Tikehau Investment Management will buy protection on credit derivative indices such as the iTraxx Europe Sub Financials or Crossover indices to smooth price volatility of its new subordinated financial debt fund.

Jamzidi Khalid, ceo of Deutsche Bank’s international Islamic banking unit and head of Islamic structuring for Asia ex-Japan in Kuala Lumpur, Malaysia, has left the firm, according to an official familiar with the departure.

China’s onshore foreign exchange options market will likely grow at a similarly slow pace to the recently-launched credit derivative market in the country, industry officials say.

Global fx trading activity slowed in 2010 with the exception of a surging yen in Japan and a 68% increase in so-called Tomorrow-Next and other short-dated roll-over trades, according to Greenwich Associates.

Credit Suisse said it plans to tap into the potential of equity derivatives and cash equities to help it reach a return-on-equity target of more than 15% for 2013.

Société Générale Corporate and Investment Banking has appointed Christophe Coutte and David Knott as co-global heads of flow fixed income and currencies.

As E.U. leaders close in on a remedy for future sovereign crises, it’s not looking very good for buyers of protection on sovereign credits.

Record low volatility in the Markit iTraxx Main index could spur increased buying of index options by endusers such as hedge funds and bank loan desks as low volatility makes buying options cheaper.

U.S. regulators need to reconsider proposed levels for block trade thresholds, Robert Pickel, executive vice chairman of the International Swaps and Derivatives Association, told Derivatives Week in an exclusive interview.

Central counterparty master bridge agreements and updates to the 2(a)(iii) default provision may not make for headlines as sexy as last year when it comes to the International Swaps and Derivatives Association 2011 Annual General Meeting in Prague, but they will certainly get industry-types excited.

A European Central Bank recommendation for the European Securities and Markets Authority to set up a trade repository-like mechanism for collecting information on net short positions appears to be the regulators’ way of tying together disparate pieces of regulation.