Derivs - People and Markets

Last week investors were feeling nervous about emerging market credit. Fund outflows were increasing and spreads in emerging market sovereigns widening sharply.

Francois Pham-Quang, the former head of European equity derivative sales at Lehman Brothers in London, has joined London-based interdealer broker Forte Securities.

Nomura is shrinking its equity sales, trading and research teams in Australia, which will lead to redundancies.

A clause in the Markets in Financial Instruments Regulation, which allows benchmark providers to refuse index licenses, has been criticized by over-the-counter derivatives participants who argue the move stifles competition.

The European Parliament’s Economic and Monetary Affairs Committee has proposed that participating countries in the Financial Transaction Tax should be permitted to apply a higher rate of tax to what it determines risker over-the-counter derivatives trades, compared to exchange-traded derivatives, cash equities and bonds.

The Japan Securities Clearing Corp. is aiming to begin its client clearing service for yen-denominated interest rate swaps in Q1 2014, according to market participants in the country.

Brian Alvarez, a single-stock derivatives trader at Citigroup in New York, has joined JPMorgan, as an executive director in equity derivatives, also in New York.

Saad Hammoud, the ex-head of equity derivative trading at Nomura in London, has joined hedge fund BlueCrest Capital Management in a new role.

Nicholas Strain, the ex-head of fx emerging market sales at Morgan Stanley in Hong Kong, is joining BNP Paribas in a similar role.

Paul Tucker, the architect of the key gilt repo market, is leaving the Bank of England. The deputy governor for financial stability will exit later this year. He was instrumental in introducing the gilt repo market in 1996, which became an intermediary between the BofE and money markets, reducing overnight rate fluctuations.

Hong Kong’s Legislative Council is expected to vote on framework legislation, intended to be the legal backbone of the country’s central clearing counterparty and trade repository reforms, sometime before the body’s summer recess in July, according to lawyers.

Credit Suisse is reviewing internal policies and procedures to mitigate the risk of breaching position limits after the Hong Kong Securities and Futures Commission fined the firm on Tuesday HKD1.6 million (USD206,100).