Derivs - People and Markets

Central counterparties that accept non-cash variation margin are taking on significant risk, according to Daniel Maguire, head of SwapClear U.S at LCH.Clearnet.

Bank of America Merrill Lynch is set to make two key hires to its equity derivatives team in Hong Kong, enlisting former-UBS sales chief Julien Bahurel and Morgan Stanley exotics trader Arnaud Droitcourt.

Horizons ETFs Management, a subsidiary of Mirae Asset Global Investments, has hired Joe Cunningham as e.v.p and head of capital markets for Horizons USA.

Deutsche Bank will list five synthetic exchange-traded funds on the Hong Kong Exchange on Thursday, which will reference country specific indices and a regional Asia ex-Japan index.

Citigroup is set to hire Cornelius Griffin, head of equity exotics trading at Deutsche Bank in New York, and Paul Mandell, a senior single stock trader, also at Deutsche Bank in New York, in similar roles.

Draft accounting rules that limit the continuation of hedge accounting to novation of derivatives resulting from mandated central clearing should be extended to include all contracts cleared through a central counterparty, according to the European Securities and Markets Authority.

Three senior fixed-income officials from merchant bank Heritage Capital have joined Exotix, the boutique investment bank, to form part of the firm’s new fixed-income credit markets group.

Bank of America Merrill Lynch has hired Julien Bahurel, co-head of equity derivatives distribution, Asia Pacific, at UBS in Hong Kong, in a similar role.

Financial transaction tax proposals being drawn up by some European Union member states may force some firms to open subsidiaries outside the tax zone, according to ICAP.

The Hong Kong Exchange has unveiled the initial members and founding shareholders of its over-the-counter derivatives clearinghouse.

David Carr, global head of sales at ANZ in Singapore, has left the firm.

Derivative contracts with Cypriot counterparties may not pay out because of recent capital controls.