Derivs - FX

Regulating market indices in the same way as interest rate benchmarks would result in additional costs for providers, which would ultimately be passed onto end-users and potentially raise barriers to entry into the indexing business, according to buyside firms.

Simon Oddie, director in interest rates trading at Barclays in London, has left the firm.

Marex Spectron is advising customers to buy six-month 15-delta risk reversals on the U.S. dollar against the yen, funded by buying one-month double-no-touches on the euro/USD.

The Australian Securities Exchange is planning to offer futures referencing its volatility index, known as the S&P/ ASX 200 VIX, in the second half of 2013, with options referencing the futures to follow.

The turnover of structured products traded on European stock exchanges in Q4 of 2012 declined by 13.4% versus Q3 2012 and 21.9% year-on-year, according to the latest quarterly report from the European Structured Investment Products Association.

The International Swaps and Derivatives Association has called on the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions to create and publish a list of Qualifying Central Counterparties or compliant regimes.

The Basel Committee on Banking Supervision and the International Organization of Securities Commissions have launched a second consultation on margin requirements for non-centrally cleared derivatives.

The premium when entering put options on the U.S. dollar against the yen is increasingly becoming more expensive for market participants as implied volatility in the cross increases.

JPMorgan is advising investors to buy two-month bearish seagulls on the New Zealand dollar against the U.S. dollar to position for a weakening in the kiwi.

Credit Suisse has launched a click n’ trade structured products platform in Switzerland, one of the largest structured products markets in the region.

Some market participants are refraining from doing business with counterparties in particular jurisdictions and some banks are shifting operations back to their domestic markets due to a lack of regulatory certainty and global harmonization.

The pension scheme for staff at minerals group Imerys is planning to investigate investing in derivatives once its ongoing asset/liability matching study concludes.