Derivs - People and Markets

Sponsors and originators of securitizations will not be allowed to hedge against the 5% retained slice under the latest guidelines for article 122a of the capital requirements directive II. Banks issuing deals will have to be fully exposed to the risk of retaining the 5% of their transactions, more commonly referred to as “skin in the game,” according to last week’s Committee of European Banking Supervisors consultation paper on the issue.

Lutfey Siddiqi, a former-Barclays Capital managing director and founding head of its Asia-Pacific head of corporate risk advisory business, is reportedly set to head up corporate fixed income currencies and commodities sales for Asia at UBS.

European credit spreads rallied last week as the picture became clearer on the important bank stress tests.

Some clearinghouses will have to expand their compliance operations due to extra reporting requirements for standardised over-the-counter derivatives arising from forthcoming regulation, and more frequent visits from multiregional regulators, according to officials.

Lawyers are raising questions about the possible impact the Dodd-Frank Bill will have on non-U.S. firms who have business onshore in the U.S.

Citigroup is expanding its equity derivatives trading team in Europe with four hires, according to an internal memo seen by Derivatives Week.

Credit Suisse is in the process of establishing a new issuing entity for retail structured products in Australia.

The Collins Amendment to the U.S. Dodd-Frank Act could impose higher capital requirements on derivatives than previously thought.

The introduction of a clearing threshold for non-financial users that take derivative positions in the E.U. would be regressive and lead to regulatory arbitrage, according to a submission from the European Association of Corporate Treasurers to the European Commission.

South Korea’s Ministry of Strategy and Finance is considering further reducing the amount corporates in the country can hedge on their currency risk

Bank Vontobel, a Swiss private bank, this morning issued six-month reverse convertible notes based on the share price of BP PLC, despite other European issuers shelving similar products on the name.

Rupertus Rothenhäuser, managing director and head of retail listed products at BNP Paribas, has left the firm and has joined Macquarie Securities Group as head of sales for structured products and exotics for Europe, based in Frankfurt.