Derivs - Interest Rate

MarketDirect, the Royal Bank of Scotland’s electronic structured products platform, plans to offer interest rate products to clients later this year. The move comes as single dealer and multi-dealer platforms are expanding offerings via electronic execution.

Daniel Malone, head of U.S. interest rate sales at Barclays in New York, has left the firm.

TriOptima eliminated USD84 trillion in over-the-counter derivatives notional principal outstandings in 2012, via its portfolio compression service that allows counterparties to tear up offsetting trades.

Nick Strain, managing director and head of the fx emerging market sales desk at Morgan Stanley in Hong Kong, has left the firm.

For market participants who are bearish on U.S. rate volatility, JPMorgan is recommending selling 3Mx10Y swaption straddles with a rate hedge overlay.

The Hong Kong Exchange plans to sell a minority stake in its new over-the-counter clearinghouse to around 12 Chinese and international banking institutions prior to the CCP’s launch this April.

Approaches to applying prudent valuation requirements to trading positions, set out by the European Banking Authority under the draft capital requirements regulation, are unnecessarily prescriptive and formulaic, according to a number of trade associations.

Brevan Howard has tapped another interest rates sellsider, its most senior yet. Riyaz Daya, managing director and global head of short-term interest rates trading at UBS in London, is joining the USD39 billion hedge fund in a similar role.

Société Générale is recommending a play to benefit from a record inverted level on the U.S. dollar/yen cross-currency swap yield curve, by paying the 5y CCS basis, 1y forward for a marked-to-market potential of +15 basis points and a roll-down over one year of +12bp.

The governance of the Euribor-European Banking Federation needs to improve, particularly in the structure of its steering committee, according to the European Securities and Markets Authority and the European Banking Authority.

Makram Fares, the ex- co-head of European equity sales and equity derivatives at Nomura in London, is set to launch his own interdealer broker and advisory firm.

Vee Leung Phan, head of fx and interest rates trading for emerging markets at Morgan Stanley in Hong Kong, left the firm a few weeks ago.