Derivs - People and Markets

Swap execution facilities should not be forced to police position limit violations on their own systems, according to Phoenix Partners Group, the parent company of an interdealer for credit default swaps that intends to register as an SEF.

The Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions released a consultative report this morning asking market participants if central counterparties should be mandated to hold enough capital to cover the credit and liquidity risk of one or both counterparties in a given trade.

Deutsche Bank has reportedly suspended two senior equity derivative traders in Hong Kong.

Proposed Commodity Futures Trading Commission rules on portfolio reconciliation may a heavy burden if applied to certain international firms, specifically those in Asia, who have only recently begun the practice.

Bank of America Merrill Lynch has expanded its corporate equity derivative sales team by adding three salesmen to new roles.

France’s Autorité de Contrôle Prudentiel, which regulates banks and insurance companies, has been quietly imposing stricter rules on regulatory capital trades over recent weeks.

John Wilson, global head of over-the-counter derivatives clearing at Royal Bank of Scotland, has been made redundant by the firm.

Peter Fung, managing director and head of exotics trading for the Asia Pacific at Deutsche Bank in Hong Kong, has left the firm, according to officials familiar with the move.

Hong Kong regulators want to mandate that all locally-incorporated financial institutions report all OTC derivatives trades to the coming local trade repository in Hong Kong.

Firms that sell complex, risky products to retail investors should ensure their representatives are giving customers concrete, easy-to-grasp explanations of how such investments might operate under changing market conditions, according to Richard Ketchum, president and CEO of the Financial Industry Regulatory Authority.

The key to growth in the structured product market this year will be broker participation, according to attendees at the Structured Products Association Conference in New York today.

Benoit Savoret, the former coo of Lehman Brothers for Europe, the Middle East and Africa, has joined Nomura today as joint head of global equities in London, in a reshuffle of the firm’s wholesale business.