Derivs - Equity

Hedge funds in Asia are hanging back from the equity and fx markets, instead taking profits prior to the end of 2013, according to structurers, salespeople and traders in Tokyo, Hong Kong and Singapore.

BNP Paribas is working with clients to have in place master confirmation agreements for trading equity derivatives. The global push is aimed at improving efficiency and reducing counterparty risk as the equity derivatives market gradually moves towards the electronic/automated confirmation model, which is currently more prevalent in fixed income.

James Chen, managing director and head of Asia Pacific cash equities trading, program trading and delta one at Barclays, has left the firm.

The last year has seen regulations mandating reporting of derivatives trades being gradually implemented in a number of key jurisdictions around the world. As a result, it has been and continues to be a busy time for regulators, service providers and market participants alike.

Wayne Luthringshausen has been atop the listed options business for over 40 years. Ahead of bowing out as chairman and chief executive of Options Clearing Corp. at year-end, he sat down with Executive Editor Peter Thompson to outline OCC plans for growth—including its investigation of over-the-counter option clearing—and take stock on the key themes that have shaped the market through his career.

Liquidity on swap execution facilities is being hit by players withdrawing from the platforms because of concerns about cross-border regulations.

KGI Asia is planning to trade rubber futures to set up trading infrastructure to access to mainland Chinese equity index options when trading starts sometime in 2014.

The Financial Stability Board is working on setting up the Global Legal Entity Identifier Foundation, a non-profit organisation that will oversee a central operating unit and local operating units that will monitor the international LEI system.

Mainland Chinese high-net worth investors have been buying one-year accumulators with 105 strikes this week on single name China A-shares, mainly in the technology or resources sectors.

Firms need more time to fully comply with the foreign accounting tax compliance act and effectively implement changes, according to numerous trade associations.

Ivan Marcinko, the former head of equity structured derivatives trading at Nomura in London, has joined Bank of Tokyo-Mitsubishi UFJ in a new role, also in London.

Firms that are engaged in derivatives trading are being asked to specify their derivative exposure in a range of asset classes entered into from Nov. 1, 2012 to Oct. 31, 2013, and submit the numbers via a survey to the Hong Kong Securities and Futures Commission by Dec 20, 2013.