Derivs - FX

Corporate importers in Australia are increasingly looking to hedge against a possible weakening of the Australian dollar against the U.S. dollar through six-month puts.

Private banks in Asia and Europe are snapping up one-to-two year fx-linked notes denominated in the offshore renminbi.

USD3 billion notional of calls in the U.S. dollar/yen due to expire today will end up being worthless.

A notional of USD3 billion in calls on the U.S. dollar against the yen, owned by a large hedge fund, are due to expire after the Bank of Japan’s policy meeting Friday.

Changes to proposed rules setting out margin requirements for non-centrally cleared derivatives are to be minimal when final rules are approved later this year, according to an official familiar with the rules.

Buyside firm the D.E. Shaw Group is placing trade restrictions on U.S. counterparties that have not yet registered as swap dealers under the U.S. Commodity Futures Trading Commission’s Dodd-Frank over-the-counter derivatives market reforms.

Most Asian end-users are ill-prepared for the incoming U.S. Commodity Futures Trading Commission’s over-the-counter derivatives market reforms, with only a small percentage ready to comply with swap dealer, trade reporting and external business conduct standards.

Japanese regulators are unlikely to implement reforms around swap execution facilities, or organised trading facilities, in the near-term, despite such rules currently being pursued in the U.S. and Europe.

Regulatory proposals covering over-the-counter derivatives will bring significant costs to end users, while rules surrounding reporting requirements and collateral remain unclear and need further clarification, according to Joel Kim, head of fixed income, Asia Pacific, at BlackRock.

Inconsistent and conflicting final rules for over-the-counter derivatives between the U.S. and Europe cannot be ruled out, according to Ng Nam Sin, assistant managing director in the Monetary Authority of Singapore’s development group.

Babak Eftekhari, head of emerging markets fx options trading and co-head of EM fx spot trading at Goldman Sachs in London, has left the firm.

Hedge funds are increasingly buying USD/CNY put spreads to position for an appreciation in the onshore yuan as expectations increase that the People’s Bank of China will allow the currency pair’s trading band to be widened.