Derivs - People and Markets

Derivatives market participants have eliminated $500 trillion in notional principal since the introduction of TriOptima’s triReduce compression service in 2003.

Banks looking to cut their Supplementary Leverage Ratio (SLR) are turning to compression techniques in ever larger volumes to ratchet down the individual numbers of swap trades on their books as well as the overall notional amount they have outstanding.

David Haldane, head of equity derivatives for Australia and New Zealand at Citigroup in Sydney, has been appointed head of equity derivatives for EMEA in London with effect from September.

Buyside firms have used the latest trade reporting deadline under the European Market Infrastructure Regulation as an opportunity to adopt a more strategic approach to reporting requirements, including the implementation of controls to maintain consistent data submissions.

Simon Winn, ex-head of sales for Asia at 360T, has joined ICAP’s EBS business as head of sales Asia Pacific, based in Hong Kong.

Overall credit default swap notional that was reported to swap data repositories last week increased by 16% from the previous week, according to data from the International Swaps and Derivatives Association. This follows a sharp increase of 50% from the week prior. Overall interest rates derivatives trading that was reported, however, declined by 9%.

Market participants have been trading downside options on the sterling against the US dollar ahead of Wednesday’s inflation report from the Bank of England.

Derivatives volume pertaining to trades between reporting dealers is critical for market liquidity and the facilitation of client trades as it allows end users to put on risk-reducing and cost-effective hedges, according to a research study from the International Swaps and Derivatives Association.

Chinese corporates have rushed to take advantage of a recent change to regulations governing their use of currency derivatives, with domestic and international banks lining up to announce deals for clients under the new rules. This new liberalisation, which took effect on August 1, is a big step in the development of China’s FX market, bankers have told GlobalRMB.

The International Organization of Securities Commissions has launched an information repository for central clearing requirements for over-the-counter derivatives, providing both regulators and market participants with a one-stop shop for consolidated information on the clearing requirements of different jurisdictions.

Vontobel Financial Products has hired Thomas Süssli in Singapore, a former structurer at Credit Suisse, to lead the firm in the Asia Pacific.

One leading interdealer broker in London this week bought a €1bn euro call on the euro/Swiss franc exchange rate in anticipation of the Swiss National Bank (SNB) raising the enforced Sfr1.20 ($1.32) floor on the rate to Sfr1.25 in a bid to combat deflation.