Derivs - Credit

Paul Bowmar has joined BNP Paribas in New York as head of fixed income CVA trading and credit/rates/fx hybrid trading for the Americas, according to an internal memo seen by Derivatives Week.

The unlimited liability model mandated by Japanese law for central counterparties could add systemic risk and lead dealers to take riskier positions, according to bankers and lawyers at the International Swaps and Derivatives Association Annual Regional Meeting in Tokyo.

Akihiro Wani, a partner at Linklaters in Tokyo, questioned the need for mandatory clearing of iTraxx Japan under the derivatives law reform in Japan from the viewpoint of efficiency at the International Swaps and Derivatives Association Annual Regional Meeting in Tokyo.

The International Swaps and Derivatives Association has come out with best practices for settlements and interest compensation claims for over-the-counter derivatives.

Moves by China to make credit derivatives trading by firms client-only are being criticized by dealers because it will bar them from hedging their own credit-related risks.

Javelin Capital Markets, an electronic trading venue planning to register post-reform as a swap execution facility, has provided regulators with specific threshold levels for block trading in interest rate swaps and credit default swaps.

Panelists of a joint Securities and Exchange Commission/Commodity Futures Trading Commission hosted roundtable this morning tackled questions of access to risk management strategies for clearing parties and possible conflicts of interest within the clearing process.

Royal Bank of Scotland has hired Floris Florquin, an ex-exotic equity derivatives broker at Cantor Fitzgerald in London, in a new slot.

Market intervention in the sovereign credit default swaps markets could cause CDS liquidity to decrease, according to a report from Fitch Solutions.

Lloyds TSB has hired Gregory Duval as a credit flow trader in its London office in a new role. Duval reports to Brynn Lewis, head of flow credit trading. He joined the firm earlier this month.

Patrick Moo, a senior emerging markets credit trader at Nomura in London, has left the firm to launch a short-term macro hedge fund.

Investors should opt to short Spanish sovereign credit default swaps against older vintage Spanish residential mortgage-backed securities, as RMBS remains highly correlated with the country’s troubled sovereign market, according to a London-based Citi analyst.