Derivs - FX

Strategists at BNP Paribas are recommending owning cross-yen volatility in anticipation of an uptick in flows out of Japan. The firm recommends buying Australian dollar/yen structures while selling U.S. dollar/JPY structures.

Derivatives Week is unveiling its Global Derivative Award winners in two stages this year. First up are the winners of the Global Derivatives Editorial Awards determined by the editorial team. The winners of the bank, interdealer broker and law firm awards will be decided by the results of the Global Derivatives Survey. The survey runs until July 22 for the bank and law firms, and runs until July 29 for the interdealer brokers.

Strategists see value in buying U.S. dollar call baskets against currencies that exhibit a high sensitivity to Chinese growth as a further slowdown is expected in the nation’s growth.

Thomson Reuters has bought Tradeweb’s fx options business. Tradeweb launched fx options on its multi-dealer trading platform February last year, allowing customers to buy and sell plain vanilla options and multi-leg strategies across G10 currencies.

The Monetary Authority of Singapore has proposed requiring reporting of derivative positions over SGD8 billion (USD6.3 billion) for non-financial specified persons.

European regulators must take into account how adopted asset segregation models will fit alongside the bankruptcy code, according to Ted Leveroni, executive director, derivatives strategy and external relations at Omgeo.

China’s Supreme People’s Court is unlikely to interpret the nation’s bankruptcy law, clarifying provisions similar to close-out netting arrangements, ahead of an actual bankruptcy case, despite active lobbying for judicial guidance from the nation’s regulators.

Li-Woon Lim, co-head of fixed income, currency and commodity trading at UBS in Singapore, is to leave the firm later this month.

The issuance of exchange-traded funds referencing more diverse Chinese underlyings could increase should Hong Kong subsidiaries of U.S. or European fund managers receive approval under the renminbi qualified financial institutional investor program by end-of-the-year.

U.S.-based counterparties operating in Asia could get the cold shoulder from major local swap dealers, such as Singaporean banking institutions, and mid-tier Japanese securities firms, after the Commodity Futures Trading Commission’s exemptive relief on swap rules ends July 12.

Institutional investors who purchased one-year put options on the Australian dollar against the U.S. dollar last summer are likely to profit from as the Aussie continues to decline against the greenback.

Corporates and hedge funds are largely maintaining long positions in the Australian dollar instead of hedging their exposures, despite the recent depreciation of the currency against the U.S. dollar.