Derivs - Equity

Loan desks and CVA desks are buying out-of-the-money payers, and in some cases payer spreads, on the iTraxx Main across all expiries as spreads return to levels seen at the end of January, before emerging market sovereigns triggered increased volatility.

Société Générale has launched digital warrant payouts on the Eurostoxx 50 Volatility Index (Vstoxx), the first of their kind on the underlying. The new payouts will complement the existing call and put warrants the firm already offers on the Vstoxx.

Regulation has forced risk from the sellside to the buyside in financial markets, according to participants at the 9th Annual European Market Liquidity Conference hosted by the Association of Financial Markets in Europe in London on Tuesday.

David Phitoussi, a senior portfolio manager at Brevan Howard focused on equity derivatives trading, has left the hedge fund.

The International Swaps and Derivatives Association has released an updated version of its 2003 derivatives definitions. The definitions contain basic terms used in the documentation of most credit derivatives transactions.

Strategists at Société Generale in Paris are touting strangle options on iTraxx Main to take advantage of high volatility on credit indices compared to credit spreads and equity volatility.

UBS in Australia is expected to launch two new tradable custom indices there within four-to-six weeks that will track equity markets.

Macro funds in Japan have been playing the correlation between emerging market indices and the Nikkei, buying so called best-of puts that go long the index which declines the least.

The Royal Bank of Scotland is one step closer to finalizing the sale of its equity derivatives and structured retail products business to BNP Paribas after reaching an agreement with the French bank.

Market participants have voiced concerns about the cross border implications of mandatory trade reporting under European Markets Infrastructure Regulation, which came into force on Feb. 12.

Barclays has seen two senior departures on its credit trading desk. Toby Norfolk-Thompson, ex-director of credit derivatives trading and Aysha Suzuki, ex-structured credit trader, both in London, have left the firm.

Market participants have voiced concerns about the cross border implications of mandatory trade reporting under European Markets Infrastructure Regulation which came into force on Feb. 12.