Derivs - FX

Rahul Darbari, global head of fx options at Standard Chartered in Singapore, resigned on Wednesday.

Fund managers and commodity pool operators have received additional assurance from U.S. regulators regarding a ‘look-through’ provision that may have precluded them from entering into over-the-counter fx transactions for certain clients post Dodd-Frank implementation.

Tradition-ICAP has hired Tim Johnson, former head of business development for Asia-Pacific at Surfacexchange, in the same role role.

Leveraged funds are trying to sell U.S. dollar via Chinese onshore yuan one-year non-deliverable forwards as CNY continues to appreciate this year, but are being hampered by the prevalent risk-off nature of the markets.

BlackRock favors electronic trading models that use requests for quotes for trading derivatives, rather than central limit order book models, because there is currently greater access to liquidity.

Credit Suisse is preparing to roll out structured products to Japanese institutional investors that reference the firm’s new Emerging Markets Focused fx index.

Ayad Butt, an ex-G10 fx derivative trader at Credit Suisse in Singapore, is set to join Citigroup in a similar role.

Department of Labor rules regarding prohibited transactions and fiduciary obligations will make it tough for swap dealers to clear over-the-counter swaps for pension plans under Dodd-Frank if guidance or exemptions are not provided. Implementation is slated for November and DoL often acts with glacial speed, which has the industry very concerned.

Knock-out puts on the euro against the U.S. dollar have been triggered in recent days following a sharp decline in the euro.

Institutional investors are still going long the Australian dollar despite the sudden slide of the currency this week, buying three-month out-the-money AUD/USD risk reversals. Appetite for put spreads on the pair has also increased.

Deutsche Bank is advising investors to sell three-month at-the-money forward U.S. dollar/Russian ruble puts versus buying 3-month 1% out-of-the-money forward USD/Mexican peso puts.

Credit Suisse has launched Advanced Strategy Fund to Japanese institutional investors and domestic funds.