Derivs - FX

UBS has launched a one-year kick-out note with a rebate that enables investors to benefit from the moderate appreciation of gold against the U.S. dollar.

Capula Investment Management, the USD13 billion fixed income and currency focused hedge fund, has hired Gagandeep Singh an emerging markets fx options trader.

The Hong Kong Exchange has presented its plans for after hours futures trading to the Legislative Council’s Panel on Financial Affairs.

Average daily volume total for over-the-counter fx instruments in the U.S. has decreased by 7.7% since April 2012.

Japanese retail investors are buying long-dated structured fx products, such as power reverse dual currency notes, that benefit when the yen weakens against the Australian dollar or, in some cases, the U.S. dollar.

LCH.Clearnet’s ForexClear platform has cleared USD500 billion of fx non-deliverable forwards since its launch last March.

Initial margin requirements in proposals from the Securities and Exchange Commission would curtail the use of uncleared swaps for hedging and challenge the resilience of the financial system.

The European Securities & Markets Authority published ‘EMIR: Frequently Asked Questions’ to “provide clarity” in relation to the European Market Infrastructure Regulation. This FAQ article covers the position prior to scrutiny of the EMIR Technical Standards by the European Parliament and Council of the E.U.”

Some dealers have started booking in London some derivatives that would normally have been booked in Hong Kong to avoid facing compliance problems under the Foreign Account Tax Compliance Act.

A majority of the European Parliament’s Economic and Monetary Affairs Committee is against European Securities and Markets Authority clearing threshold proposals for non-financial counterparties.

Scott Stickler, global head of UBS’ hedge fund prime brokerage service in New York, has left the firm.

MarketDirect, the Royal Bank of Scotland’s electronic structured products platform, plans to offer interest rate products to clients later this year. The move comes as single dealer and multi-dealer platforms are expanding offerings via electronic execution.