Derivs - Equity

Ulrich Schlumberger, the former global head of emerging market equity derivatives trading and global head of equity delta one at Dresdner Kleinwort, has landed at VTB Capital in a newly-created London slot as global head of delta one.

Indian banks using over-the-counter derivatives will be hit with a credit value adjustment risk capital charge on top of the capital charge for counterparty default risk, under draft guidelines to implement draft Basel III proposals in the country.

Recent market volatility has emphasised the importance of well functioning markets, particularly in the wholesale over-the-counter and derivative markets, as increased proportions of execution have been arranged by voice of late.

Brian Clancy, a managing director and head of platform development and e-commerce strategy at Citigroup in New York, has been let go.

Regulators should assess the appropriateness of derivative products before requiring them to be executed on electronic platforms, according to Robert Pickel, executive vice chairman of the International Swaps and Derivatives Association in New York.

The emergence of meta-platforms allowing investors to trade investment products from multiple issuers online is seen as the biggest threat to single dealer dominance of the structured product market in Europe.

The International Swaps and Derivatives Association has published draft taxonomies for regulatory reporting on over-the-counter derivatives.

European end users are increasingly using Chinese offshore renminbi fx products for hedging and investment purposes, with more growth expected next year.

Equity derivative dealers are working on rolling out new tail risk products and strategies in 2012, with the market expecting low liquidity and high volatility to pose risks in the early stages of the New Year.

Credit Suisse has issued a structured product linked to gold and equity indices that includes a knock-in feature that reduces the coupon payment to one percent.

Equities could rise up to 15% and commodities 10% in 2012 as the probability of stronger economic growth becomes more apparent during the year and corporate earnings growth remain positive, according to Jack Malvey, chief global market strategist at BNY Mellon Asset Management.

The scope of Japan’s domestic clearing obligations should be limited to yen interest rate swaps based on LIBOR, basis swaps and credit default swaps on iTraxx Japan, according to the International Swaps and Derivatives Association.