Derivs - People and Markets

Bondholders in MF Global Holdings may recover between 10% to 30% of face value, according to Fitch Ratings.

Bourse Africa, a new commodities and derivatives exchange, will launch in 2012, according to Financial Technologies of India, a 60% owner of the new exchange.

Credit default swaps on the largest U.S. banks widened sharply over concerns that Italy’s financial problems will spread.

The Financial Industry Regulatory Authority has proposed that carrying and clearing firms keep certain client records electronically to facilitate liquidation and transfer of customer accounts in the even the firm fails.

London-based Arbuthnot Banking Group is selling its Arbuthnot Securities investment-banking unit to Westhouse Holdings.

HSBC is said to be eliminating hundreds of investment-banking jobs from its 20,000 strong global banking and markets unit as part of its plan to slash 30,000 positions across the firm by the end of 2013.

Royal Bank of Scotland has launched its sixth inflation-link retailed bond on the Order Book for Retail Bonds, managed by the London Stock Exchange.

Bid/ask spreads will increase by 0.2%, implementation costs will exceed USD750 million, and ongoing operational costs will exceed USD250 million in implementing the proposed regulatory mandate for electronic execution into the over-the-counter interest rate swaps and options market, according to a International Swaps and Derivatives Association cost-benefit analysis published today.

National Association of Financial Market Institutional Investors credit default swaps definitions will contain a simplification of the cash settlement mechanism, doing away with weighted averages and replacing them with multiple valuation dates.

Rajesh Malhotra, managing director and head of index trading for the Americas in New York at Nomura, has left the firm.

The Royal Bank of Scotland is reducing and restructuring its fixed income division.

Dubai Gold and Commodities Exchange has named Stephen Gaterell as its ceo.