Derivs - People and Markets

The sovereign credit market has been racked by volatility in 2011 and this week was no different.

Societe Generale is re-arranging responsibilities for its credit derivatives traders in the U.S., after the Paris-based firm has let go at least three members of the credit trading desk this week.

Assured Guaranty has responded to a lawsuit filed against its AG Financial Products unit by Lehman Brothers Holdings for more than USD1 billion in termination payments under derivatives deals, saying the claims are “without merit.”

Standard & Poor’s downgrades of top global banks could force investment banks to put up more collateral, which could make trading in derivatives markets, particularly interest-rate swaps and credit default swaps, more expensive. Click here to read the story from Reuters

Australia’s Altius Asset Management has hired Vanessa Thomson as head of credit research.

Barclays Capital has appointed Nicholas Wright as head of global capital markets for Barclays Capital Japan.

BNY Mellon has launched MarginEdge, a global derivatives margin management service that allows financial that allows financial institutions, clearing members and central counterparties to better manage margin collateral.

The U.S. Commodity Futures Trading Commission is expected to propose next year regulations dealing with foreign application of swaps rules under the Dodd-Frank Act, according to Scott O’Malia, a CFTC commissioner.

Morgan Stanley has added the FTSE Bonus Growth Plus plan to its structured products offerings.

Bank of America Merrill Lynch has appointed Luigi Gubitosi as country executive and head of corporate and investment banking for Italy.

Royal Bank of Scotland has been penalized USD1.9 million for its bid of 31.5 basis points on USD5 million of Dynegy bonds, less than half that of offer prices made by other credit default swap dealers.

LCH.Clearnet said the transfer of trading positions belonging to some 300 U.K. clients of MF Global is “virtually complete.”