Derivs - FX

Credit Suisse is marketing structured notes that offer investors the opportunity to participate in an appreciation of the Chinese renminbi against the U.S. dollar.

Plans by the Taiwan Financial Securities Commission to create a trade repository with daily reporting requirements across all assets of over-the-counter derivatives, as well as information including the names of the traders and brokers who worked on the deal, will be prohibitively expensive for the market and unworkable, market players have warned.

Brazil’s BM&F Bovespa said it will launch eight FX derivatives Aug. 15 linked to the Brazilian real.

Ireland’s National Treasury Management Agency has agreed to begin posting collateral to its derivatives counterparties “to mitigate the Exchequer's exposure to market counterparties while at the same time ensuring Ireland has efficient market access for its hedging activities," according to the NTMA’s annual report.

FX options market participants expect thin options activity on the back of government interventions in the Swiss franc and yen to end next week, as players pile into puts to position for a retracement in U.S. dollar/yen spot and to buy volatility in USD/CHF and other Swiss crosses.

The U.K. Financial Services Authority has found significant inconsistencies in the way asset managers manage their derivatives risk.

Standard Chartered strategists are recommending investors buy one-week digital one-touch options on the U.S. dollar/yen to capture the potential for a Japanese intervention in the still-appreciating currency.

Upcoming regulation may force Asian fx derivatives traders to switch from single-dealer to multi-dealer platforms.

The International Swaps and Derivatives Association may review its definitions of restructuring as a credit event if there is enough demand from credit default swap users, according to David Geen, general counsel of ISDA.

The International Swaps and Derivatives Association has called for liability caps for clearinghouse members should the clearinghouse default.

Proposed rules floated by the European Securities and Markets Authority to improve the ways firms market investment products, such as structured products, through prospectuses, has been slammed by issuers.

South Korea is proposing legislation that would create a licensing framework for central counterparties and mandate clearing for any transaction that can significantly affect a market or markets if counterparties default.