Derivs - FX

UBS has appointed Paul Lambert as head of fx and fixed income at the bank’s operations in the U.K. as well as portfolio manager for its Currency Alpha Fund and other currency strategies.

UBS has launched a structured product offering investors the opportunity to participate in an appreciation of the Norwegian krone, Swedish krona, Australian dollar and New Zealand dollar against the Swiss franc.

The Basel Committee is expected to release additional guidance on the risk capital treatment of initial margin and default fund contributions within the next four weeks.

A hedge fund domiciled in Switzerland reportedly bought billions in notional of euro downside options against the Norwegian krone this week, a size rarely seen in the currency pair.

Swiss National Bank is said to be using fx options to limit the Swiss franc at EUR1.20.

South Korea’s Ministry of Strategy and Finance announced it will begin taxing interest income earned by foreigners on fx bonds, or kimchi, as well as on some derivatives.

Citigroup has let go three fx salespeople in New York.

One European dealer bought a large double no-touch option on the euro/Swiss franc with the view that the currency will be range bound until the end of the year, according to fx traders.

The Chilean pension regulator has ruled that Undertakings for Collective Investment in Transferable Securities domiciled in Ireland are no longer approved for general investment.

Citigroup is in discussions with clients to set up secured loan facilities that would allow end users to convert a range of assets into cash to be used as collateral at clearinghouses.

The European Council has taken a stricter stance on pension funds clearing over-the-counter derivatives in the latest draft of the European Market Infrastructure Regulation.

Corporates, hedge funds and institutional investors have been selling offshore Chinese renminbi put options against the U.S. dollar in recent weeks to gain extra yield over the interest rates on retail deposits, according to Eddie Wang, head of fx structuring for Asia at Crédit Agricole in Hong Kong.