Derivs - Credit

Knight Capital Group has hired a sales executive to push its new credit default swap platform NetDelta in North America. Michael Shapiro joined as a director last month. He reports to Andrew Scott, managing director, who started in January.

Stanford University Finance Professor Darrell Duffie argues in a new book on policy issues facing credit derivatives that the sort of central clearing platforms proposed for CDS would not have prevented outsized losses at American International Group.

Christian Howe, managing director and head of credit trading for Asia ex-Japan in Nomura’s special situations group, is set to move to the firm’s sellside team.

Richard Li, a trader in Nomura’s structured credit trading group in Hong Kong, has landed at Barclays Capital.

Eurex Clearing is working with the U.S. Depository Trust & Clearing Corporation’s Trade Information Warehouse on a real-time feed that would show cleared derivative positions and how they impact each member’s portfolio.

With reports circulating that the International Monetary Fund is preparing its debut bond offering, Derivatives Week asked some market participants if a market could be developed for default protection on the notes.

Timothy Fischer, the former co-head of high-yield trading for North America at Lehman Brothers, is set to join Deutsche Bank as managing director in global credit trading.

BNP Paribas is understood to have hired Mark Mallia, the former global head of credit trading at Shinsei Bank, to run its flow credit business for Asia Pacific from Hong Kong.

ICE Trust has devised an auction mechanism for determining the settlement prices of cleared credit default swap positions and therefore the daily variation margin to be posted by its members.

Charlie Cho, head of credit sales and trading for Europe, Middle East and Africa at Bank of America, is set to relocate to New York from London in early June.

Syncora Guarantee has become the first monoline to cease payments under credit default swap contracts and other claims after a New York State Insurance Department section 1310 order forced it to suspend payments as of yesterday.

The founders of Tacticus Opportunity Fund, a new long/short credit fund focusing on dislocations in the asset-backed securities market, are launching another fund using the Troubled Asset Relief Program.