Derivs - People and Markets

Allstate Corp. has stated that all the credit default swaps it has sold were written by regulated subsidiaries that have the approval to do so.

Bart Chilton, a commissioner with the Commodity Futures Trading Commission, has said the agency is gearing up to expand its regulation of carbon trading, which he described as potentially the largest commodity market.

An unidentified European bank has placed a long-dated knock in/knock out option on the U.S. dollar/yen cross to hedge vega risk in its books.

Brett Golledge, European head of investment grade flow credit trading at Royal Bank of Scotland in London, left the bank last week.

Bank Indonesia is close to completing draft regulations governing the sale of structured products in Indonesia.

Wu Xiaoling, vice chairwoman of the finance and economic affairs committee of China’s National People’s Congress, said on a panel at the International Swaps and Derivatives Association annual general meeting today that a key project for China is creating a coherent system for filing and disclosing completed over-the-counter trades.

More dialogue with global regulators is essential to ensure the over-the-counter derivatives market will still perform an important role in the financial sector, Robert Morrice, chairman and ceo in the Asia Pacific for Barclays Bank, said in his keynote address at ISDA's annual general meeting in Beijing.

Yi Gang, deputy governor of the People’s Bank of China, sidestepped questions on whether he supports the use of credit default swaps at the International Swaps and Derivatives Association annual general meeting in Beijing today, shortly after he expressed a strong desire to see Chinese corporate bond issuance increase.

Andrew Donohue, director of the Securities and Exchange Commission’s Division of Investment Management, has floated the idea that the industry may need new rules to govern how mutual funds use derivatives.

Some prop desks have expressed an interest in buying tranches of synthetic collateralized debt obligations in part of in full if they are listed for sale by banks, insurance companies and asset managers, according to SecondMarket, an independent marketplace for illiquid assets.

Markit is preparing to launch a cash convertible bond index paired with an equity hedge index so it can license both for over-the-counter derivatives.

Allianz Risk Transfer is closing down its New York structured finance group. Tom Lamb and Bill Seery, the principals who started the group, have left the firm, along with two or three transaction professionals.