Derivs - People and Markets

A new interdealer broker called Elevation is being formed, according to credit derivatives professionals in New York. The shop is headed by a former UBS O’Connor executive.

Alaric Lau, managing director and head of China fixed income sales at Nomura, has left the firm. Based in Hong Kong, he was responsible for selling flow credit, fx and rates derivatives to Chinese banks and state-owned entities for hedging purposes.

GLG Partners has launched three listed long/short UCITS III funds focused on the emerging markets and plans to roll out a fourth imminently. The firm will use the new funds to tap into the onshore European retail market.

A coalition of trade groups is floating the idea of restricting the re-use of collateral posted in derivatives transactions. The idea comes in response to concern from buysiders reeling after Lehman Brothers collapsed and they had difficulty recovering their money. The group plans to release its proposals by November.

The U.S. Bankruptcy Court for the Southern District of New York today agreed in principle to the concept of non-binding mediation between Lehman Brothers and counterparties on its in-the-money derivatives. A formal order was adjourned to Sept. 15, the next omnibus hearing date.

Reval, a hedge accounting and technology company focusing on corporate users, has acquired software specialist FXpress with a view to seeking a role as a trade repository.

Credit Suisse has hired Richard Cohen as a director and head of credit trading in Hong Kong. He joins from Morgan Stanley, where he had a similar role covering Asia and Japan until he left in June (DW Online, 6/29).

With the dividend swaps market pricing in a drop in European oil company dividends, Barclays Capital is recommending investors buy dividend swaps on Total.

Société Générale has recruited Bruno Garnier, a director in equity derivatives trading formerly with UBS in Stamford, Conn.

The European credit default swaps market is more liquid than in the Americas, according to Fitch Solutions, because uncertainty over the European basic materials and healthcare sectors is driving increasing protection selling and buying activity.

Deutsche Bank has tapped Kenneth Kwok, the former co-head of corporate sales for Asia ex-Japan at Goldman Sachs, as managing director and head of private institutional sales in Asia.

Credit Suisse and UBS are each bringing out structured notes linked to the Standard & Poor’s 500 this week. They’re looking to hook investors with reservations about the index’s recovery.