Derivs - People and Markets

Patrick Pearson, head of financial markets infrastructure at the European Commission, this morning quelled industry fears over a political crackdown on speculative derivatives trading.

The recently-formed Swaps and Derivatives Markets Association believes that Nomura’s acceptance as an Intercontinental Exchange Trust U.S. credit default swap clearing member is a positive step towards the group’s goal of more access to clearing for boutique and mid-market banks.

Imraan Moola, a director in equity cash and derivatives trading at Credit Suisse in London, has left the firm and is set to join Citigroup in a new role.

Interdealer broker Tullett Prebon is preparing to launch a hybrid voice and electronic credit default swap platform in the U.S. The firm already offers this service in Europe and plans to expand across the pond where some competitors already have a foothold.

UBS has begun marketing two-year kick-out notes that offer the potential for a 43% return dependant on an appreciation in gold rates.

Macquarie Securities Group has appointed Richard Sansaricq as head of delta one and synthetic prime brokerage sales in a new role based in New York.

Cantor Fitzgerald has hired Floris Florquin, former head of exotic equity index trading at Bear Stearns, as a broker in an effort to expand its exotic equity derivatives business globally.

The Ambac Assurance Corp. credit auction landed at 20 this afternoon, meaning investors will receive USD0.80 for every dollar of protection purchased against the company. The auction was run jointly by Markit Partners and Creditex.

Structured notes linked to the stock performance of local companies and sponsors were a standout performer in the run up to the last FIFA World Cup in Germany, but South Africa 2010, which kicks off this week, is a different story. Structurers say there is a lack of investor appetite this time round and new regulations in Europe have blocked some markets entirely.

The first round of bidding on the Ambac Assurance Corp. auction landed at 27.5 this morning, according to a Web site jointly run by Markit Partners and Creditex. This means protection sellers will likely have to pay out around USD0.725 on the dollar for credit default swaps sold on the holding company that triggered the CDS in March.

Daiwa Capital Markets is reportedly out front in the running to purchase KBC Financial Products’ warrants and global convertible bond business after Mizuho Securities Asia pulled out of the race last month, say people with knowledge of the matter.

Sterling gained ground on the euro this week amid expectation Prudential has to unwind its currency hedges bought against the entire USD23billion cash component of the deal to purchase AIG’s Asian arm, AIA, which has now collapsed.