Derivs - FX

Daiwa Capital Markets is in the process of applying for a license to trade over-the-counter derivatives in Korea. Its the latest move in expanding throughout Asia ex-Japan, said Dominique Blanchard, global head of derivatives in Hong Kong.

Interference by politicians over how central counterparties calculate their margin requirements and operate risk management systems could lead to such institutions being built up as ‘too big to fail,’ according to Sharon Bowles, chair of the European Parliament’s Economic and Monetary Affairs Committee.

Hedge funds have been buying billions of U.S. dollars in notional in U.S. dollar/Hong Kong dollar options taking positions in case the Hong Kong Monetary Authority decides to de-peg the currency from the U.S. dollar.

Keith Noyes, regional director for the Asia Pacific at the International Swaps and Derivatives Association in Hong Kong sat down for a wide-ranging interview with Eleni Himaras, senior reporter and Hong Kong Bureau Chief for Derivatives Week.

The most viable model for clearinghouse interoperability in the Asia Pacific region would be one in which regional clearinghouses became members of a so-called super-central counterparty, Keith Noyes, regional director of the Asia Pacific for the International Swaps and Derivatives Association in Hong Kong, told Derivatives Week in an wide-ranging interview.

Hedge funds sold one-year implied volatility and bought two-year implied volatility through forward volatility agreements on the U.S. dollar against the Brazilian real this week, according to fx traders.

Singapore’s Economic Development Board is approaching U.S. corporate treasurers to pitch the city state as location for their treasury trading desks.

Lawyers say the exemptions for settlement of derivatives trades under a proposed Chapter 11-like law in Hong Kong are too narrow and could put swap counterparties in Hong Kong at a competitive and cost disadvantage.

Investors should outsource their collateral management operations in the post-reform OTC market, even if they feel it is a core competency, according to panelists at Financial Technology Forum’s OTC Derivatives Operations and Processing Conference today.

The Securities and Exchange Commission will look at how circuit breakers work in the equity market, before thinking about adopting them in the over-the-counter derivatives markets, according to Chairman Mary Schapiro.

David Bizer, chief administrative officer of Nomura’s wholesale division in London, is reportedly set to leave the firm in the next few weeks.

Petron Corp., the Philippines’ largest oil refinery, will this week become the first corporate in Asia to sell local currency-denominated bonds with a currency swap derivative overlay.