Derivs - FX

Annual turnover in Asia’s over-the-counter derivatives markets grew 2.2% a year between 2008 and 2012, with annual turnover reaching USD186 trillion last year, according to the International Swaps and Derivatives Association.

Japanese corporate importers are increasingly using tailor-made derivatives in order to cheapen fx options used to hedge the continuing weakness of the yen.

A lack of progress and co-ordination in developing cross-border rules is fragmenting the over-the-counter derivatives markets, and will in turn dampen liquidity, investment and growth, according to a letter from numerous Finance Ministers addressed to the U.S. Treasury and other U.S. regulators.

Standard Chartered has hired Petter Sternby, the ex-head of the financial institutions group Asia ex-Japan at Nomura in Hong Kong, as head of Southeast Asia financial institutions strategic coverage in Singapore.

Mark Webster, managing director and head of fx sales at the Royal Bank of Scotland in London, is set to join Standard Chartered as global head of fx sales in Singapore.

Citigroup has re-launched its corporate fx electronic execution platform, CitiFX Pulse 2.0.

From 1 April 2013, a new financial regulation framework took effect in the U.K. The Financial Services Authority (FSA) is replaced by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), the Bank of England is to have overall responsibility for financial stability and a new Financial Policy Committee (FPC) of the Bank of England is being created. However, the Financial Services Act 2012 does more than just give effect to these regulatory reforms.

UBS is launching a digital plus capital protected note that enables investors to benefit from the appreciation of a currency basket against the U.S. dollar.

An agreement that will allow the Australian dollar to be settled directly with the yuan in the spot market will grow volumes of fx deliverable forwards and options once further deregulation occurs in China, according to market participants.

Société Générale is pitching a six-month seagull to take advantage of the continued depreciation of the yen, as numerous banks revise their forecasts higher on the U.S. dollar against the Japanese unit.

Market participants, and particularly buyside firms, are looking to standardize derivatives products which will accelerate the move to electronic trading, according to panelists at the Futures Industry Association’s Expo in New York this morning.

Central counterparties that accept non-cash variation margin are taking on significant risk, according to Daniel Maguire, head of SwapClear U.S at LCH.Clearnet.