Derivs - Equity

JPMorgan is touting a cross-asset play to take advantage of differences in volatility across equity and fx.

Structured investment products dominate Hong Kong’s non-exchange traded investment landscape, with transactions accounting for 56% of the HKD584 billion market up to March 31, 2012, according to a Hong Kong Securities and Futures Commission survey.

Eurex Exchange has signed an agreement with MSCI for the creation of exchange-traded derivatives on a number of indices. Eurex plans to launch the derivatives in 2013.

China Construction Bank in Hong Kong is looking to launch a series of non-principal protected unlisted callable equity-linked structured products that references single stocks to retail investors.

A lack of clarity in what U.K. regulatory authorities define as complex in relation to retail structured products is a serious concern for the industry, according to Timothy Hailes, chairman of the Joint Associations Committee.

The Bank of China in Hong Kong is preparing to launch a series of non-principal protected single stock-linked structured products aimed at retail investors.

The Futures and Options Association has hired Natasha Stromberg as manager of regulation in London.

Investors should buy an 80% out-the-money December 2014 put on the Kospi 200 at 3.15% in a bid to hedge against the negative effects caused by tighter investment policies for large corporate conglomerates, according to strategists at BNP Paribas.

BNP Paribas is seeing flows for a long emerging market volatility trade it started pitching in September. The trade is to buy a Jan 14 variance swap at 32.75 (capped) on iShares MSCI Emerging Markets Index Fund and sell a Jan 14 variance swap at 25.05 (capped) on the S&P 500.

Société Générale has launched two tools on its online equity derivatives research platform that allow investors to choose the best options when implementing volatility pair trade scenarios, a first for the market, according to strategists. The launch on VolHub comes as dealers ramp up online equity derivative research and analytical capabilities to streamline the investment process of buysiders.

Tokyo-based Simplex Asset Management has launched two synthetic exchange-traded funds Thursday on the Tokyo Stock Exchange.

EFG Financial Products has launched the first Burma-themed structured product. The tracker-certificate is linked to a bespoke index of stocks that have exposure to Burma.