Derivs - Interest Rate

Société Générale is advising investors to enter into EUR two-five year bull flatteners through short expiry receivers.

Tim Hawkins, a senior euro interest rates swap trader at Morgan Stanley in London, is set to join Bank of America Merrill Lynch as a director and head of gilts trading, also in London.

Société Générale is advising investors to take advantage of the USD forward rate agreement-overnight index swap curve flattening as it expects the U.S. Federal Reserve will need to distribute its reference data following the Jackson Hole symposium later this month.

Japanese dealers will have a pricing advantage over foreign firms as they will not have to include credit valuation adjustments into their risk management capital ratios for domestic yen-denominated derivatives when new Basel III standards are enforced in March.

Hedge funds are urging the European Securities and Markets Association to include a straight-through-processing standard in the final regulatory technical standards for over-the-counter derivatives, central counterparties and trade repositories. The funds argue that an STP standard would reduce systemic risk and create an open and competitive market.

The Royal Bank of Scotland has appointed Jeremy Smart in a newly created role as global head of electronic distribution within its market and international banking division in London.

Igor Arsenin, director of fixed income research and the head of Latin America fixed income strategy at Credit Suisse in New York, has been appointed managing director and head of emerging Asia interest rates strategy at Barclays Capital in Singapore.

BNP Paribas is marketing five-year Islamic collared profit-rate certificates in Switzerland and Luxembourg. It’s the first time the structure has been aired, according to structurers and salesmen in Europe.

SwapClear, the global interest rates clearing service owned by LCH.Clearnet, cleared a notional volume of buyside contracts of USD233.4 billion last week, a record for the firm.

UBS is marketing separate barrier reverse convertible structured products in Europe, with capital protection linked to the Eurostoxx 50 and coupon payments linked to the three-month interest rates of Canadian dollar CDOR and Swedish krona STIBOR. The CDOR and STIBOR structures, which are being offered in addition to the firm’s Euribor, CHF Libor and USD Libor products, are rare benchmarks for European-wide investors, according to structurers.

Clearing of over-the-counter interest rate swaps via Singapore Exchange’s central clearing counterparty DerivativesClear increased for the third consecutive month in July to SGD9.77 billion (USD7.82 billion) from SGD6.15 billion (USD4.92 billion) in May, according to data released by the city’s bourse.

Taiwanese insurance firms are looking to ramp up allocations in structured products referencing custom thematic indices.