Derivs - People and Markets

Shravan Sahdev, managing director and head of U.S. dollar interest rate derivatives trading at the Royal Bank of Scotland in Stamford, Conn., has left the firm.

UBS reported net profit for Q1 of 2013 of CHF988 million compared to a net loss of CHF1.9 billion in Q4 of 2012, driven by an increase in revenues from the firm’s investor clients services unit of its investment bank, and from wealth management, among other areas.

Dhruv Piplani, partner and head of equity derivative trading Asia except-Japan at Goldman Sachs in Hong Kong, has left the firm.

The European Commission is reviewing the three committees under the umbrella of the European Financial Stability Facility that supervise financial services across Europe.

A string of cases involving structured products and the Tax Effectif Global, or statutory interest rate, in France has lawyers fearing legislation may be needed to tighten the rules governing interest rate agreements.

Changes to proposed rules setting out margin requirements for non-centrally cleared derivatives are to be minimal when final rules are approved later this year, according to an official familiar with the rules.

Buyside firm the D.E. Shaw Group is placing trade restrictions on U.S. counterparties that have not yet registered as swap dealers under the U.S. Commodity Futures Trading Commission’s Dodd-Frank over-the-counter derivatives market reforms.

Swaptions are likely to become a clearable product in the near-future, although further work needs to be done in relation to risk management and default management in the interim, according to senior clearinghouse officials.

Most Asian end-users are ill-prepared for the incoming U.S. Commodity Futures Trading Commission’s over-the-counter derivatives market reforms, with only a small percentage ready to comply with swap dealer, trade reporting and external business conduct standards.

Sotaro Kato, co-cao of global markets for Asia Pacific at Nomura Securities, and Christopher Murphy, global head of rates and credit at UBS, have been elected to the International Swaps and Derivatives Association’s board of directors.

The reporting of collateral information to trade repositories is lagging behind global developments of trade data collection in the over-the-counter derivatives market.

Japanese regulators are unlikely to implement reforms around swap execution facilities, or organised trading facilities, in the near-term, despite such rules currently being pursued in the U.S. and Europe.