Derivs - Equity

Investor positioning and the composition of market flows this week suggest two things about returns over the near term: a sharp intraday sell-off like that in August is less likely, but so is a healthy rebound if Chinese catalysts fade from view, said analysts this week.

A tumultuous start to the year has made it more expensive to buy hedges, but strategists at banks in New York have some ideas to keep costs in check.

Neuberger Berman, the independent and employee-owned investment manager, has acquired an investment team specialising in options from Horizon Kinetics.

TABB Group, a research and consulting firm focused on capital markets, has hired two analysts to its derivatives practice.

Options on Hong Kong-listed Chinese shares traded at one of the most expensive levels of relative value in recent history on Thursday as traders bid the premium for Hang Seng China Enterprises Index (HSCEI) contracts well above the recent realised volatility of the index.

Two senior bankers from Royal Bank of Scotland’s defunct Asian loans division have moved to Banco Santander.

2015 set a number of records in the options market as traders flocked to index and volatility-linked products, but equity options volumes dipped due to factors that look likely to persist in 2016.

Competition between derivatives exchanges is intensifying, giving rise to a rash of product and platform launches in 2015, as well as geographical expansion. But 2016 will be dominated by regulatory deadlines for electronic trading. As Dan Alderson reports, exchanges that best prepare market participants to meet these requirements will be the ones that will win out.

2015 will be remembered as a year when volatility returned to financial markets. With strong technical buffers to the trading range of US and European equity markets going into 2016, short volatility strategies look set to be compelling money earners in the year ahead, writes Andrew Barber.

French lender Natixis has bolstered its Asia Pacific team with a pair of senior appointments to its fixed income and equity units.

BlackRock, Bank of New York Mellon and State Street have agreed to include Markit’s exchange traded fund collateral lists in their collateral management schedules.

Credit options were the worst hit of volatility strategies on Thursday, said traders, after the European Central Bank unveiled provisions that many in the market found underwhelming.