Derivs - People and Markets

Tactical Global Management in London will use portfolio swaps similar to contracts for difference with Credit Suisse as its counterparty to get synthetic equity exposure at its TGM Tactical Global Equity Fund, scheduled to launch April 1.

A U.S. reinsurer has purchased the first second-event call option on the Carvill Hurricane Index covering storms in Florida and the Gulf of Mexico combined.

Morgan Stanley is advising investors to sell long-term volatility via variance swaps, for example, while placing shorter-dated put spreads and overwriting calls on stocks in their portfolios to pocket premiums.

ICE Trust has approval to start clearing and processing index trades. But industry experts note that a key goal of isolating margin funds—via a process called customer segregation—may only be achieved with a new law or a workaround from the superintendent of the New York Banking Department.

Société Generale has added an equity derivatives strategist to its New York team in a new role.

A Canadian accounting rule that will force companies to value derivatives more precisely is expected to be fraught with operational and economic challenges. The abstract, known as EIC-173 from Canada’s Emerging Issues Committee, takes effect March 31.

As if splitting hairs on the likes of 'modified restructuring' and 'modified modified restructuring' in credit events wasn't enough fun for one day, nine Markit staffers agreed to have their heads shaved Thursday night to raise money for the St. Baldrick's Foundation in support of childhood cancer research.

Traders have seen a renewed interest in contingent premium put sales to institutional clients, notably pension funds attracted to the notion of not having to stump up premiums.

UBS has reportedly retained John Coffeng, one of eleven senior equity derivatives traders who left the firm earlier this month (DWO 3/6), by offering him the top trading slot in the region, formerly held by Kenneth Pang, another one of the defectors.

The window for buyers of credit default swaps to adhere to new a auction settlement supplement and protocol for existing trades opened Thursday and, according to Karel Engelen, director and global head of technology solutions at the International Swaps and Derivatives Association in New York, most users are expected to opt in.

Primus Asset Management, an affiliate of Bermuda-based Primus Guaranty, has hired John Chrystal as a consultant to look at sister company Primus Financial Products, which writes credit default swaps.

Bank of America Merrill Lynch has named Behnouche Mostachfi and Frank Rawlins global co-heads of FX options trading, based in London.