Derivs - FX

The Investment Company Institute is suggesting some modifications to a proposed Treasury Department and the Internal Revenue Service rule that would ease tax burdens for funds investing in derivatives.

Benjamin Welsh, formerly a head of foreign exchange sales at Goldman Sachs and head of currency trading and sales for North America at HSBC, has joined Jefferies as managing director and head of fx based in New York

Hong Kong corporates have been rushing to hedge U.S. dollar/Chinese onshore renminbi exposures via bonus non-deliverable forwards.

A U.S. bank was in the market snapping up USD500 million in calls on the Australian dollar/U.S. dollar cross Tuesday and Wednesday.

Standard Chartered strategists are advising investors to buy one-month call spreads on the U.S. dollar against the Hong Kong dollar to take advantage of a moderate rise in the greenback.

Christiane Mandell, head of institutional sales across all asset classes and products for the Americas at Standard Chartered in New York, has left the firm.

Fx option traders are advising end users to sell three-month volatility on the U.S. dollar and Korean won cross via a straddle to take advantage of a recent bounce in risk appetites in the New Year as volatility levels correct lower.

Indian banks using over-the-counter derivatives will be hit with a credit value adjustment risk capital charge on top of the capital charge for counterparty default risk, under draft guidelines to implement draft Basel III proposals in the country.

Recent market volatility has emphasised the importance of well functioning markets, particularly in the wholesale over-the-counter and derivative markets, as increased proportions of execution have been arranged by voice of late.

Regulators should assess the appropriateness of derivative products before requiring them to be executed on electronic platforms, according to Robert Pickel, executive vice chairman of the International Swaps and Derivatives Association in New York.

The International Swaps and Derivatives Association has published draft taxonomies for regulatory reporting on over-the-counter derivatives.

European end users are increasingly using Chinese offshore renminbi fx products for hedging and investment purposes, with more growth expected next year.