Derivs - People and Markets

Proposals by the Basel Committee on Banking Supervision to incorporate market liquidity risk into the trading book capital framework by classifying risk into buckets of differing liquidity are too simplistic and may add unnecessary complexity into the framework, according to industry participants.

Nomura has made two key appointments to its Asia ex-Japan equity derivatives team in Hong Kong, hiring Laurent Poirot and Vincent Yam from Bank of America Merrill-Lynch.

Patrick Law, managing director and head of north Asia rates and fx trading at Barclays in Hong Kong, is joining Bank of America Merrill Lynch.

The Hong Kong Exchange is planning a round of simulations in the third quarter of this year, to test its newly constructed central counterparty for clearing over-the-counter derivatives, according to a statement in its financial results.

The European Securities and Markets Authority has written to the European Commission to ask for a one year delay, to January 2015, in introducing the requirement to report exchange-traded derivatives trades to trade repositories.

Large European banks are likely to strictly control their derivatives trading, especially of riskier instruments, as they strive to meet Basel III leverage ratio capital requirements, according to strategists at Royal Bank of Scotland.

The Hong Kong Securities and Futures Commission will require clearinghouses seeking recognition to submit a self-assessment detailing how they comply with the standards for financial market infrastructure set out by the Committee on Payment and Settlement Systems of the Bank for International Settlements and the International Organization of Securities Commissions.

The European Securities and Markets Authority has broadened the reach of clearing requirements for non-financial counterparties in its latest update on the European Markets Infrastructure Regulation. Derivatives executed outside the E.U. will now count towards the clearing threshold for non-financial counterparties.

Retail structured products issuers in India are awaiting clarification from the Reserve Bank of India, due next month, that could make issuance of privately placed transaction easier.

Gerrard Katz, former head of fx Asia at Banco Bilbao Vizcaya Argentaria in Hong Kong, has joined Scotiabank.

CLS Group is opening an office in Hong Kong that becomes operational Aug. 20.

Chris Eagle, global head of fx at Marex Spectron in London, has joined Jefferies as a managing director and head of institutional fx sales for Europe, also based in London.