Derivs - FX

Emergent Asset Management is building a basket of short positions in the U.S. dollar in its Emergent FX Fund, set against long exposure to currencies in countries that are likely to benefit from growth in commodities—namely Brazil, Australia and Canada.

A court case involving Standard Chartered unit SC First Bank as the defendant and four corporate plaintiffs who lost money on fx derivatives kicked off yesterday in Seoul District Court.

Goldman Sachs has tapped Shantanu Shete, head of hedge fund sales for Asia Pacific at Citigroup, to work in a fixed income sales role. Previously based in Singapore, Shete will relocate to Hong Kong.

Various fx players were scuttling Tuesday to scoop up one-touch options positioned for a sharp decline in the U.S. dollar against the Canadian dollar in the next one-to six-months.

Hector Chan, head of fx and interest rate derivatives structuring in Asia for BNP Paribas, has left and market officials say he is expected to join Goldman Sachs in Hong Kong in a similar role.

New York investment bank Lighthouse Financial has launched a derivatives operation focusing on equity and credit. It may expand into commodities and potentially currencies downstream.

Hedge funds and trading desks have been buying yen calls against the U.S. dollar today following a statement by the Democratic Party of Japan, the country’s opposition party, that if elected it would force Japan to stop buying U.S. government bonds due to fears over the future value of the dollar.

Standard Chartered has filled two sales slots in Taipei covering user currency and interest rate hedging.

BNP Paribas is recommending hedge funds and institutional investors buy a one-year at-the-money put on the euro/U.S. dollar struck at USD1.45, coupled with a partial knock-in call at the same strike to be executed during the first five months of the trade.

Hedge funds and corporates were buying U.S. dollar puts against the euro earlier today as the European Central Bank was expected to announce a rate cut.

DZ Bank has hired Jit Yeow Lim in a new role as director and head of sales for its capital markets business in Hong Kong.

Toronto-based Integrated Asset Management bought a one-year double no-touch option on the U.S. dollar/Canadian dollar at the beginning of the year.