Derivs - Equity

U.S. House Financial Services Committee Chairman Barney Frank (D-Mass.) this morning trashed industry arguments that over-regulation of the financial markets, including derivatives, could lead to the next financial crisis.

Morgan Stanley is advising investors to make spread option plays on Korean and Indian stock indices, based on expected rate hikes from the countries’ respective central banks.

Clariden Leu, the structured products subsidiary of Credit Suisse, yesterday rolled out EUR67 million (USD94 million) in multi-barrier reverse convertibles targeted at retail and institutional investors.

The Obama administration’s proposal to rein in proprietary trading has predictably drawn fire from industry watchers. At issue is how to distinguish market making for clients from excessive risk-taking using proprietary capital.

Lucas Newbill, a former v.p. in exotic equity derivatives sales at Société Genéralé, has joined New York broker-dealer WJB Capital Group as a v.p in sales/trading.

Wayne Smith, deputy head of markets and investment firms at L’Autorité des Marchés Financiers, and other European regulators are calling on the European Securities and Markets Authority to oversee trade repositories.

Flows of accumulator products in Asia are set to take off thanks to a new pricing trend sweeping the market and retail investors’ appetite returning following the Lehman Brothers-linked minibond debacle.

BBVA has hired Eugene Lee to head its equity derivatives and cash sales business in Asia Pacific.

Nicolas Schmitz, a senior equity derivatives single stocks trader at Liquid Capital in London, has joined Santander in a similar role.

Broker MF Global has hired Kumaran Vijayakumar, a former head of equity derivatives at Banc of America Securities, to lead the build-out of its U.S. equity derivatives desk.

Hedge funds who established February and March 2010 expiry call spreads on Kraft Foods in anticipation of the successful acquisition of Cadbury look set to earn millions.

Europe is zeroing in on taxing financial transactions, with specific reference to over-the-counter derivatives.