Derivs - Equity

European trade repositories are calling for the European Securities and Markets Authority to set down guidelines on global legal entity identifiers, or LEIs, ahead of trade repository reporting going live in February.

There are three main components to the European Market Infrastructure Regulation: risk management requirements for OTC derivatives that are not centrally cleared; central clearing of certain OTC derivatives, together with a harmonized framework of clearing within Europe; and reporting of all derivatives to trade repositories.

Brazilian investors are increasingly investing in structured products with European underlyings, such as the Eurostoxx and single names, according to salesmen and structurers in the Americas.

Investors who are bullish on equity markets are having to look to longer-dated structured products in order to get uncapped upside, due to the low volatility and low rates environment.

Mohamed Yangui, the ex-head of product development and structuring group at Nomura in London, is set to join Bank of America Merrill Lynch in a similar role in London.

Société Générale has seen renewed interest from private banks for strategies that give exposure to Japanese equity while mitigating yen weakness, as interest in Japan surges from European and U.S. investors.

Adam Welham, the ex-head of European equity syndicate at Barclays in London, is set to join U.S.-based Fidelity Investments as a managing director in equity capital markets.

U.S. equity option exchanges are considering a raft of action plans for securities information processors, such as looking at backups in the event of a technological failure.

The lack of clarity surrounding timing between executing a trade on a swap execution facility and reaching a clearinghouse is a serious concern for BlackRock.

The Shanghai Stock Exchange and the China Financial Futures Exchange are locked in negotiations that will decide which bourse will offer listed options on mainland China equity, according to market officials.

Regulation aimed at curbing high frequency trading is unnecessary and negatively impacts a market vital in terms of providing liquidity, according to Andreas Preuss, ceo of Eurex, speaking at the 29th annual Futures & Options Expo in Chicago today.

UBS is looking to offer capital unprotected equity-linked structured products to mainland Chinese investors in Q1 2014, in a bid to increase the diversity of its offerings as volumes there grow.