Derivs - Interest Rate

Barclays is suggesting entering a EUR 6m*5y 1x2x1 broken receiver fly as a high carry and payout strategy to position for a reversal in the recent sharp sell-off in the front-end of the euro rate curve.

Mark Wong, managing director and co-head of linear rates trading at Deutsche Bank in Singapore, has left the firm.

UBS is marketing unique collateralized floating rate notes linked to three-month USD Libor and the credit risk of the Swiss Confederation—the first of their kind to be offered publically in Switzerland.

The Hong Kong Exchange has presented its plans for after hours futures trading to the Legislative Council’s Panel on Financial Affairs.

Front-end bear flatteners to position for U.S. interest rate hike expectations are being recommended by Barclays. According to the firm’s strategists, the trade would earn carry and is attractive at present on the back of recent demand for mid-expiry short tail options.

Initial margin requirements in proposals from the Securities and Exchange Commission would curtail the use of uncleared swaps for hedging and challenge the resilience of the financial system.

The European Securities & Markets Authority published ‘EMIR: Frequently Asked Questions’ to “provide clarity” in relation to the European Market Infrastructure Regulation. This FAQ article covers the position prior to scrutiny of the EMIR Technical Standards by the European Parliament and Council of the E.U.”

Some dealers have started booking in London some derivatives that would normally have been booked in Hong Kong to avoid facing compliance problems under the Foreign Account Tax Compliance Act.

The Shanghai Clearing House is ready to launch its central clearing counterparty for over-the-counter derivatives, with clearing of onshore yuan-denominated interest rate swaps to start soon.

Scott Stickler, global head of UBS’ hedge fund prime brokerage service in New York, has left the firm.

Chee Chen Poh, a managing director in fixed income trading at BNP Paribas in Singapore, left the firm last week.

Lower rates and attractive levels of volatility on the Thai baht swap curve give investors the opportunity to buy 1y2y 3.25% receiver swaptions, according to the Royal Bank of Scotland.