Derivs - FX

Hedge funds and corporates have been buying up one-week U.S. dollar calls against sterling this morning on increased fears of a hung parliament in the U.K.

Investors in Asia are feverishly trying new ways to take advantage of expected appreciation of the Chinese yuan.

Crédit Agricole Corporate & Investment Banking, formerly known as Calyon, has hired Dan Polidano as an options trader focusing on Commonwealth currencies.

The fight isn’t over on the U.S. Senate Financial Reform Bill, despite Republicans successfully blocking a vote on bringing the bill, which would bring sweeping restrictions to over-the-counter derivatives, to debate last night. Democrats will force two more votes today and tomorrow.

Société Générale is advising players to sell straddles on cable to take advantage of what the firm believes could be a gradual spike in implied volatility in the pair.

Nomura plans to bulk up its fixed income, currency and commodities sales force in India.

Robert Popowski, the U.S. head of fixed income sales at Crédit Agricole Corporate & Investment Banking, formerly known as Calyon, has resigned.

The Senate Agriculture Committee voted 13-8 to send the Wall Street Transparency and Accountability Act of 2010, penned by Chairman Sen. Blanche Lincoln (D-Ark.), to the full senate.

A handful of six-month discrete one-touch options hit the market earlier this week in anticipation the U.S. dollar will continue to strengthen against the yen.

The non-deliverable forwards market has been pricing in greater yuan appreciation against the U.S. dollar on the back of increasingly strong indications that China will de-peg its currency from the dollar and subsequently allow its currency to strengthen over time.

BNP Paribas has added Vasilis Koutsaftis from JPMorgan as a director in its fx and interest rates structuring group in New York.

The Senate Agriculture Committee’s proposals for regulating the over-the-counter derivatives market, which Chairman Blanche Lincoln (D-Ark.) said would be released today, will now come out Friday at the earliest because the legislative language is not yet finished, according to a Committee spokeswoman.