Derivs - People and Markets

Korean shipbuilder Daewoo Shipbuilding and Marine Engineering is at risk of losing a significant portion of this year’s earnings due to fx options that expire at the end of the year.

Details have emerged about how NYSE Euronext subsidiary Liffe and LCH.Clearnet are setting margins for credit default swaps cleared through their newly launched clearing platform—the first such platform to go live.

Rob Reoch, founder of London-based structured credit derivative consultancy Reoch Credit Partners, has teamed up with Alessandro Ciravegna, a private banking veteran, to launch a global macro fund.

Close-out netting regulation could be in place in Mauritius sometime early next year.

A dispute between Lehman Brothers’ lawyers and Minibond holders over payment rights has raised questions about what would happen if Lehman—the swap counterparty to the issuer—is authorized in bankruptcy proceedings to get paid out before investors. There are sobering implications beyond just Asia, where investor appetite was strong.

The first launch of an exchange-based clearing model for credit default swaps, by NYSE Euronext subsidiary Liffe and LCH.Clearnet, will solely have capability to clear European index trades. Single-name trades will follow.

JPMorgan has lost Rahim Dharamshi, an executive director in equity derivatives trading with a focus on emerging markets, in recent days.

Structured product professionals want industry-wide disclosure rules, according to a Structured Products Association survey of sellsiders, wholesalers, third-party vendors and lawyers.

The Bank of Thailand is set to introduce fx regulations early next year that will set out currency denomination and hedging requirements for all over-the-counter trades.

The majority of houses in Asia have announced rounds of job cuts and that’s creating a grim outlook for bonus announcements in January through to March.

The International Accounting Standards Board today published proposals for the treatment of derivatives embedded in financial contracts.

Credit default swap spreads on Ireland sat at 178 basis points this morning—20% tighter than last Monday—after the government moved to inject EUR5.5 billion (USD7.7 billion) into three of its banks.