Derivs - People and Markets

Credit default swaps on Irish financial names pulled in dramatically this morning following an announcement by the government that it plans to spend EUR77 billion (USD113 billion) to shift banks’ toxic assets to a new state-run ‘bad bank.’

The Polish Financial Supervision Authority has fined Maciej Duda, president of Warsaw-based PKM Duda, PLN200,000 (USD71,000) for allegedly misinforming investors over the meat processing company’s investments in currency options.

A group of executives from Argent Funds has formed Raven Rock Capital, a corporate credit relative value shop.

Copenhagen-based Saxo Bank has opened an office in Amsterdam targeting retail investors.

Goldman Sachs has hired Helen Zhou in a new role selling structured investments to corporate and institutional clients in mainland China.

Australia and New Zealand will begin trading credit default swaps with a fixed coupon next Monday, in conjunction with the roll to the Markit iTraxx Australia series 12.

The International Swaps and Derivatives Association is holding a meeting next week to kick off its effort to revise the 2002 Equity Derivatives Definitions.

The European Commission is soliciting alternatives to proposed capital charges for customized trades and has reached out to various industry bodies and dealers for their thoughts.

The New York bankruptcy court judge handling the workout of the Lehman Brothers Holdings estate ruled yesterday that Metavante Corp., a counterparty that owes Lehman roughly USD7 million plus interest on a swap, has to pay up. That’s despite language in the International Swaps and Derivatives Association contract that suggested otherwise.

Hedge funds and corporates have been buying one-week calls on the euro against the Swiss franc today, anticipating that the Swiss National Bank will announce its intention to continue providing liquidity to franc money markets and purchase franc-denominated bonds to keep franc appreciation in check.

A training module for participants selling what the Monetary Authority of Singapore considers to be complex structured products will be implemented by the first quarter.

Asian fund of funds manager Gen2 Partners is set to launch a fund investing in commodity trading advisors and Wesley Hu, founder and partner in Hong Kong, said it will adopt an over-the-counter overlay strategy.