Derivs - FX

Vietnam’s sovereign five-year credit default swaps gapped out 30 basis points today to 230 bp after the country’s central bank devalued the dong to curb inflation, according to Royal Bank of Scotland data.

China’s foreign exchange regulator has ordered all qualified foreign institutional investors to submit details of any structures referencing China A-shares that have been sold to non-licensed foreign customers.

A corporate governance review into British and foreign banks released today by the U.K. Treasury will not recommend that banks disclose the names of traders who earn over GBP1 million (USD1.6 million)—despite a recommendation otherwise by City minister Paul Myners.

Nomura Securities International has hired Jason Pealy for its G10 fx options trading desk in New York.

Corporates have been buying up short-term calls on the euro against the U.S. dollar this week, following results of a survey by the Munich-based IFO Institute for Economic Research showing rising confidence in commerce and news that gross domestic product in Germany rose 0.7% for the third quarter.

UniCredit Group is planning to add to its New York currency options trading desk.

Regulations imposed on Thursday by South Korea’s Financial Supervisory Commission to limit fx hedging transactions should have limited negative impact on market activity, analysts at Standard Chartered believe.

Hedge funds have been buying up calls on the yen against the U.S. dollar and the euro this week, fuelled by downbeat comments from U.S. President Barack Obama and the German government, both warning of a double-dip recession.

Stephan Cook, head of fx hedge fund sales at Standard Chartered in Singapore, has left.

Last-minute attempts are being made to convince South Korea’s National Assembly to ditch plans to introduce a mandatory pre-approval process for new structured instruments.

Corporates in the Middle East have increasingly turned to vanilla and exotic fx options in recent weeks as central banks and some scholars have moved to approve more complex hedges.

Korea’s Seoul Central District Court has approved a plaintiff’s request to call on Nobel Prize winner in economics, Robert Engle, as an expert witness for an fx knock-in knock-out case due to be heard on Dec. 17.