Derivs - FX

Growth in offshore China yuan structured fx products is increasing this year as exporters in the greater China region increasingly enter structured fx forwards, such as target redemption forwards, in addition to growing investor interest in CNH-denominated structured notes.

ISDA Amend, an online service hosted by the International Swaps and Derivatives Association and Markit targeting European Market Infrastructure Regulation compliance, has launched the EMIR Counterparty Classification Tool.

Yuri Lin, head of North East Asia fixed income sales at ANZ in Hong Kong, is moving to Natixis in a new role.

Banco Central Do Brasil is likely to roll a significant amount of derivatives positions on the U.S. dollar versus the real in order to provide support to the Brazilian currency, according to strategists. The central bank is using currency swaps as a tool to bring liquidity and stability to the market.

A potential mismatch could arise if Japan’s Financial Services Agency looks at using trust accounts for the segregation of client collateral when it implements the Basel Committee on Banking Supervision and the International Organization of Securities Commissions’ margin requirements for non-centrally cleared derivatives, according to market officials.

The results of the Global Derivatives Survey have been revealed. Subscribers can view the rankings of sellsiders, interdealer brokers and law firms active in the global derivatives market.

Nomura’s hybrid structured products business is growing in Korea, with investors looking to products that combine credit, rates, equity and fx underlyings, according to John Goff, head of global markets structuring in Hong Kong. The business is partly driving higher structured product revenues for Nomura in Asia.

Investors have been selling short-dated risk-reversals on the yen as a hedge against short call positions on the U.S. dollar.

VTB Capital has hired Dimitrios Kavvathas, the ex-co-head of securities distribution and head of structuring, Asia Pacific ex-Japan at Goldman Sachs, as head of global markets for Asia Pacific in Hong Kong.

Strategists at Credit Suisse are recommending shorting the U.S. dollar against the yen via digital puts and reverse knock-in put butterflies.

Investors have been selling optionality on the euro against the U.S. dollar via at-the-money options and risk-reversals, while picking up butterflies on the pair as a cheap hedge. This comes as the debt ceiling deadline in the U.S. draws closer.

The central banks of the U.S. and Japan will not be required to comply with EMIR reporting and clearing requirements after the Council of the European Union approved a European Commission act calling for their exemption.