Derivs - FX

Standard Chartered has hired Daren Hill, a former director and coo in fx prime brokerage at Citigroup in London.

Some investors based in Asia are playing short-dated carry trades on the Australian dollar, U.S. dollar cross that benefit should the pair remain range bound.

Société Générale is recommending investors buy risk reversals on GBP/USD on likely sterling weakness over the next three months. The firm expects the Bank of England to lower the U.K. unemployment rate threshold of its forward guidance in next month’s inflation report, which would drive a reversal in GBP/USD spot.

The International Swaps and Derivatives Association and China’s National Association of Financial Market Institutional Investors have talked about cooperating on areas of interest. It’s a detente following a period of frosty relations.

The International Swaps and Derivatives Association has appointed external counsel to produce a memorandum updating its clients on China’s close out netting rules.

Standard Chartered is looking to launch a distribution platform within two months for a number of tradable custom indices, which will reference varied asset classes including equity, credit and high yield.

Bank Vontobel expects to increase issuance of structured products linked to renminbi bonds in 2014 as investors look for an alternative and higher yield compared to developed currencies.

Recent relaxation to documentation requirements by China’s State Administration of Foreign Exchange could boost the mainland's cross currency swap market.

Taiwan corporates, mostly import and export firms, are taking a larger share of the yearly U.S. dollar, renminbi hedging market, accounting for about 10-to-20% of the overall volume.

Investors should consider buying Polish zlotny/Hungarian forint, while also entering into a two-month double-no-touch on the euro/HUF, according to Bartosz Pawlowski, global head of emerging market strategy at BNP Paribas in London.

Low premium flow structures such as reverse knock-outs are expected to continue being favoured by investors over the next 12 months as central banks continue to play a significant role in guiding fx markets, according to senior fx officials.

Market participants that are found guilty of committing fraud or manipulation in the E.U. could face jail under rules agreed by the European Parliament and E.U. member states today.