Derivs - Equity

The International Swaps and Derivatives Association has warned that mandatory clearing for over-the-counter equity derivatives could see volumes migrate to the exchange-traded market, diminishing the role for the OTC contracts in risk management.

Hedge fund investors are entering one-year capped variance and volatility swaps on baskets of stocks and exchange-traded funds with the view that some correlated underlyings will disperse in the near future against those that are likely to remain stable.

Stoxx has licensed its two Minimum Variance Indices to Resona Bank. The indices will be deployed in passive funds that will be used by Japanese pension funds.

UBS has hired Jerry Kao, former director, equity derivatives trader at Deutsche Bank in New York.

Years ago, the motivational guru Tony Robbins came to visit my office, searching for the attributes of successful options trading. I was nervous about making a good impression. After all, he was the expert on success who wrote the book on getting the edge. What advice could I possibly offer? During the interview, it occurred to us both that the “secret sauce” of trading is similar to the required attributes of any profitable business. It must have a definable and consistent “edge”, it must be hard for others to harvest (even if the basic business concept is easy) and it requires relentless discipline.

The Montreal Exchange is planning to launch futures on the FTSE Emerging Markets Index, the first futures contract offering exposure to that particular underlying.

Non-financial counterparties in France are struggling to determine their obligations under the European Markets Infrastructure Regulation, according to French regulator L’Autorité des marchés financiers.

Jeff Micsky has been appointed global derivatives head at JonesTrading Institutional Services, based in San Francisco.

Jos Dijsselhof, ex-general manager group hubs at Australia and New Zealand Bank in Singapore, is set to join Euronext as chief operating officer in Amsterdam.

The total options contracts traded in May dropped by 18.32% compared to last May, according to the Options Industry Council.

Tim Reilly, head of North American electronic execution sales at Citigroup in New York, has left the firm.

The Chicago Board Options Exchange plans to launch July 7 afternoon-settled, end-of-month options on the S&P 500.