Derivs - People and Markets

Outright put options, compared to spread strategies like put spreads or risk reversals, are now the most cost-effective way to play Australian financial names, strategists at Morgan Stanley believe.

A District of Columbia appeals court ruling ordering the U.S. Securities and Exchange Commission to reconsider its proposal of regulating equity-linked annuities as securities has not settled the issue, instead drawing a mixed reaction from insurers.

The volume of dealer and non-dealer firms that signed up to the Small Bang protocols, which put in motion an auction mechanism for settling restructuring credit events, is 2,105—more than the 2,095 adherents to the Big Bang in April.

The Securities and Exchange Commission and Commodity Futures Trading Commission are seeking more oversight of the newly launched central counterparty clearing platforms for over-the-counter derivatives, this time through managing margin requirements.

Payments from certain structured investments issued by Keydata Investment Services should resume shortly, amid a deal between the insolvent firm’s administrator PriceWaterhouseCoopers and HM Revenue & Customs that’s expected to be complete within the next 24 hours.

Mizuho Securities USA has hired Mark Jicka as head of flow credit trading in the Americas, and Philip Garrubdo as head of flow credit sales Americas.

Standard Chartered is expected to begin trading equity derivatives in India by next year.

The International Swaps and Derivatives Association is expected to complete equity options documentation for closed markets in Asia—India, Malaysia, Korea and Taiwan—next month, with emerging markets in Europe following in October or November.

New York credit hedge fund Global Credit Advisers has hired Kirk Wortman to research leveraged loans, distressed investments and special situations for its GCA Credit Opportunities Master Fund, a long/short credit hedge fund focused on high-yield and distressed corporate debt.

Some are questioning the effectiveness of central counterparty clearing in reducing systemic risk if all asset classes of over-the-counter derivatives are not catered to the way credit default swaps have been.

Daiwa Securities SMBC has launched a delta one business and hired Simon Roche, ex-desk head of delta one trading at Merrill Lynch in London, to head it.

BNP Paribas wants to expand its equity derivatives capabilities in Asia in response to increasing use by pension funds and sovereign wealth funds in Southeast Asia over the last six months.