Derivs - Equity

Buyside firms are largely unprepared for the post-Dodd Frank over-the-counter derivatives environment and need to work toward a more balanced relationship with the major dealers through technology buildouts and adherence to a new set of industry best practice standards, according to a report.

Barclays Capital strategists are recommending 10-year trades playing cheap Nikkei implied volatility off of relatively richly priced U.S. dollar/yen implied volatility.

Adam Crawford, head of equity derivatives structuring for the Asia Pacific at Morgan Stanley in Hong Kong, left the firm this week, according to officials.

The International Swaps and Derivatives Association is aiming to shore up a provision allowing a non-defaulting swap counterparty to net out its position and terminate a transaction with a counterparty in default. The industry group has set up a working party to review the master agreement provision after aspects of it have been queried by recent litigation.

Giving European regulators the power to impose stringent margin calls and demand more collateral could help prevent future crises or at least coordinate regulators’ actions in a crisis, according to a report from the European Securities and Markets Authority, the new pan-European regulator, to its members and European lawmakers.

Marcus Overhaus, the ex-head of quantitative research and equity structuring at Deutsche Bank, and Ricardo Honegger, the ex-head of global markets and global banking for the Middle East and North Africa region, also at Deutsche Bank, have joined UBS in new roles, according to an internal memo.

Bank of America Merrill Lynch sold USD100 million in notes linked to the Dow Jones Industrial Average on Friday, a notional that landed over 50% above what the retail structured product group expected, according to an official at the firm.

Timothy Last, managing director and head of equity derivative flow sales for Asia ex-Japan at Barclays Capital in Hong Kong, has left the firm.

A thicker shroud than usual surrounds the topic of bonuses this year as the banking industry waits to see how the European regulators’ ire will play out.

A host of officials working in Barclays Capital’s fx, equity and rates teams were cut over the last few days, including some senior employees working on the firm’s derivative desks, according to market officials.

Structured products, derivatives and index funds will reference the Standard & Poors/Standard Chartered Greater China Index in the coming months, StanChart officials say.

Barclays Capital has begun cutting staff from its London office today, including some senior traders working on the firm’s derivative desks, according to market officials.