Derivs - Equity

Options trading executives have noticed increased demand for performance metrics as more clients incorporate options into their trading portfolios.

In the sphere of finance, it is very common to refer to nonobservable parameters (correlation, volatility of volatility…) as if the concept was clearly defined.

The Hong Kong Securities and Futures Commission is seeking comment on a proposal that would introduce more flexibility for firms to determine whether clients are professional investors, making it less cumbersome to invest in over-the-counter derivatives and more complex structured products.

Volumes for reverse convertible notes have picked up in recent months, particularly when linked to high dividend stocks and real estate investment trusts.

If U.S. regulators set the bar for over-the-counter derivative block trades high enough and allow swap execution facilities to create segregated venues for block trades, the dealer-to-dealer market could continue unimpeded.

Macro, multi-strategy, and convert-related hedge funds have been buying down-and-out put options.

The Options Clearing Corp. plans eventually to offer clearing services on single name OTC options.

Chief compliance officers of swap dealers and major swap participants are facing a range of new responsibilities under reforms sparked by the Dodd-Frank Act.

STOXX has launched four indices in Europe designed to underlie structured products and exchange traded funds.

The coming Hong Kong central clearinghouse is aiming to include local banks, according to Sundeep Bhandari, chair of the Treasury Markets Association over-the-counter derivatives clearing feasibility taskforce.

RBC Capital Markets has hired David Odenath, a senior institutional account manager for U.S. private banks at Deutsche Asset Management, as a senior equity and rate-linked structured products salesman.

Tradeweb, a provider of electronic trading technology, is eying the U.S., Asia and Latin America as regions where it can expand its equity derivatives marketplace platform.