Derivs - FX

A non-U.S. based hedge fund snapped up USD2 billion of puts on the euro/U.S. dollar from Morgan Stanley this week.

Goldman Sachs reportedly sold around USD750 million in calls on U.S. dollar/yen yesterday, a size that stood out given the current thin volumes in fx options.

Morgan Stanley has dropped four executive directors in fx and rates derivatives sales in New York. Thomas Doyle and David Zakaiem were let go in FX derivatives sales, while Noel Freeman and Tony Lopiccolo left from the rates group.

The Bank of International Settlements has flagged potential data gaps for over-the-counter derivatives trade repositories and what steps should be taken to address such issues.

Pension funds, insurance companies and asset managers face the largest increases in fx cash and derivative transaction costs should a financial transaction tax be implemented in Europe.

Deutsche Bank and Fortinbras Asset Management have launched an Undertakings for Collective Investment in Transferable Securities fund that aims to capture trends in interest rate, commodity, foreign exchange and fixed income markets.

Hong Kong is likely to see more synthetic exchange-traded funds referencing commodities and fixed income this year. Firms are targeting the asset classes on the back of a lift from a spate of ETF approvals by the Securities and Futures Commission.

The U.K. Financial Services Authority is being pressed to not regulate structured product pricing by industry groups who argue there is no evidence to back intervention.

Rabobank has hired Christian Lawrence, a fixed income and currency strategist at RBC Capital Markets in London, as an emerging market fx strategist, also in London.

David Naville, director and head of fx structuring Asia Pacific at Barclays Capital in Hong Kong, has been promoted to managing director covering fx structuring for investment banking and corporate distribution.

Corporates in Hong Kong are moving away from U.S. dollar, Chinese offshore renminbi target redemption forwards--a type of zero cost option--and are instead using USD/CNY forwards to hedge at more favorable rates than prevailing CNY spot prices.

The Commodity Futures Trading Commission has finalized rules to implement a legally segregated, operationally commingled clearing model in the cleared swaps market.