Derivs - People and Markets

A big barrier trade of undetermined origin is set to expire on Tuesday and when it does there is likely to be a bounce in volatility on EUR/USD options.

The International Swaps and Derivatives Association is set to form a working group to revamp certain equity derivative-related definitions as a result of events that called into question what constitutes nationalization, among other things.

U.K. investment house Keydata Investment Services is marketing two new income plans, both linked to the FTSE 100 with a 50% capital protection barrier.

Martin Hartmann, the newly appointed head of fixed income and currency structuring for the merged Commerzbank and Dresdner Kleinwort in London, is tipping credit to lead a recovery in the markets.

Areca Investment Management has launched its maiden fund of funds—the Areca Value Discovery Fund. Dislocations in the credit markets mean that paper at the top of the capital structure is trading at huge discounts and Areca has picked hedge fund managers that will try and take advantage of this.

An executive committee meeting to be held Monday by the U.S. Structured Products Association will hash out how best to deal with an expected firestorm of government regulation on the industry, and whether it can self-regulate.

Having recorded its first negative year in more than two decades with a 26.8% loss in 2008, Richard Perry’s Perry Capital is pinning its hopes of a turnaround on its ability to benefit from defaults, capital structure arbitrage plays, and securitized products.

Portfolio manager Susan Aldworth has left New York-based structured finance-focused asset manager Ischus Capital Management.

Structured notes referencing timber stocks have not been as popular as expected, according to investment advisers at DWS Investments.

Staggered payment deliveries, clawback provisions and conditional payouts are fast taking center stage this bonus season and in talks about next year’s deals.

Alexander Lin, co-head of equities and head of equity derivatives and convertibles for Asia ex-Japan at Credit Suisse, has left the firm following a restructuring.

Royal Bank of Scotland will sell equity derivative retail products to affluent customers in eastern China via regional bank Bank of Ningbo.