Derivs - Equity

The Chicago Board Options Exchange is set to launch new forms of variance futures on the S&P 500.

The U.S. Commodity Futures Trading Commission is expected to exempt regions from compliance to segments of the Dodd-Frank Act and will issue further no-action letters on the back of international pressure not to move too quickly with implementation of reforms, according to industry lobbyists.

Firms are expected to up their exchange-traded fund issuance in the Philippines in the coming year, as banks prepare deals following recent regulatory guidance from the country’s chief regulator.

Stock exchange Chi-X Australia has hired Jamie Crank as head of market operations in Sydney.

BNP Paribas is advising investors to consider selling dividend yield swaps on the S&P500 in an attempt to profit from the current elevated implied dividend yields.

The Chicago Board Options Exchange has launched the CBOE Low Volatility Index, aiming at investors who have shifted asset allocation from riskier assets to low volatility assets.

Amundi Investment Solutions has replaced Crédit Agricole Corporate and Investment Bank with BNP Paribas as the main market maker for its equity exchange-traded funds and as the single swap counterparty for its equity and commodity ETFs. The decision by Amundi is a big coup for BNP, according to structurers, citing Amundi as one of the biggest providers of ETFs in Europe, with its largest ETF affected sitting at USD1.07 billion.

Investors should look at buying at-the-money January 2013 call options on Hong Kong indices, such as the HSI and the HSCI, in a bid to gain from next year’s forecasted positive start, according to traders.

Long-only asset managers are increasingly looking at using equity options in portfolios after adding derivative staffers and also scoping online research and analytical tools recently deployed by sellsiders.

Citigroup is looking to focus more on systematic volatility products next year as investors look away from asset classes such as equities and real estate and increasingly opt for other underlying.

Regulatory proposals for initial margin requirements for non-centrally cleared derivatives could lead to a funding shock in the market. There may also be less availability and liquidity in risk management instruments, according to a report from the International Swaps and Derivatives Association.

ANZ is looking to leverage Swiss firm Vontobel’s structured product and fund expertise in a push to expand private banking business in the Asia Pacific.