Derivs - People and Markets

Tim Hart, global head of equity derivative sales and co-head of equities at Deutsche Bank in London, resigned on Friday.

The China Banking Regulatory Commission will reportedly allow banks to use credit derivatives for market-making and hedging purposes when it releases its expected guidelines, a change from earlier drafts.

A new stress test for systemically important financial institutions has been outlined by risk academic Darrell Duffie, professor at Stanford University.

Fewer swaps than Congress and the public expect may end up getting traded on exchanges or through swap execution facilities, according to a Securities and Exchange Commission official.

The U.S. Securities and Exchange Commission has hired two industry professionals as structured finance and new product specialists in the New and Structured Products Unit within the Division of Enforcement.

Centrally clearing over-the-counter derivatives trades will raise costs for established asset managers, at least in the short run, said panelists at the Osney Media Optimising OTC Derivatives Operations in Fund Management conference in London this morning.

The Australian Securities and Investments Commission today issued a 24-page investor guide on contracts for difference suggesting that the predominately over-the-counter derivatives are unsuitable for many retail investors.

The Managed Funds Association has offered a number of corporate governance and ownership recommendations. This is in response to the Commodity Futures Trading Commission’s proposed rule on governance at derivatives clearing organizations, designated contract markets and swap execution facilities.

Scottish Widows Investment Partnership has hired Daniel McKernan from BlackRock as head of European and U.K. credit, which includes synthetics and cash bonds.

Macquarie has hired Chris Neale, an ex-managing director in equity derivatives trading at UBS in London, as head of index flow trading, also in London.

The Hong Kong Securities and Futures Commission today warned investors over the inherent counterparty risk associated with synthetic or swaps-based exchange-traded funds, including those that use over-the-counter derivatives to track an index.

China’s financial markets and derivative regulatory framework is too fragmented and must be consolidated as it creates an undo burden on several market participants, said Yong Li, compliance director at China Universal Asset Management Co. at the Derivatives Asia 2010 conference last week in Beijing.