Derivs - Interest Rate

Société Générale strategists are recommending two over-the-counter plays on Japanese stocks to take advantage of so-called year-end window dressing.

Corporate income statement volatility will fall under the International Accounting Standards Board’s proposed accounting standard changes for derivative transactions released last week.

The International Swaps and Derivatives Association has released two studies highlighting methods to increase transparency in the credit default swap and interest rate swap markets.

BNP Paribas has hired Peter Albano as its head of investor relationship management for hedge funds and institutions, Americas, covering all asset classes, including derivatives.

Jefferies, Cantor Fitzgerald and Mizuho Financial Group, as well as other firms, are building out their fixed income operations in Europe with recruitment campaigns.

Segregating client collateral via individual accounts in clearing over-the-counter derivatives is gathering popularity among endusers, according to speakers at the Futures and Options World Derivatives Conference on Wednesday.

The Commodity Futures Trading Commission introduced a proposed rule today that includes a four-part test for exempting financial entities from being designated as swap dealers. The rule also includes proposed thresholds for the designation of major swap participants.

StormHarbour has begun offering broker-dealer services in Tokyo as part of the integration of NSH Securities Co., which was recently acquired by the company.

Some Asian equity and macro hedge funds have been buying Australian dollar receiver interest rate swaptions as a cheap tail risk hedge against a hard landing scenario in China, said Viktor Hjort, head of equity derivatives strategy in Asia at Morgan Stanley in Hong Kong.

A single European central counterparty backed by the European Central Bank is still being considered by some members of the European Parliament, according to Kay Swinburne, member of the Parliament’s Economic and Monetary Affairs Committee.

Exchanges have already begun the process of preparing to set up clearinghouse capabilities for over-the-counter derivatives in Canada, senior exchange officials told Derivatives Week.

Some derivatives lawyers are working on a strategy for large endusers to snuff out the practice of rehypothecation—where dealers use collateral pledged by a customer to back the sellsiders own trades.