Derivs - People and Markets

Standard Chartered is struggling to find a seller of protection for a USD442.5 million unfunded mezzanine credit default swap, which references the bank’s trade finance portfolio.

World Bank officials are working on weather risk deals for a number of developing nations, primarily across Africa, after executing a novel contract in October for Malawian drought, in which it acted as an intermediary.

The market for derivatives on U.S. residential property is growing thanks to a change in the type of instrument used on the RPX, an index representing average home prices paid in 25 metropolitan areas, and an easing of U.S. tax law.

Markit is looking to launch credit derivative indices in new markets in the New Year. Regions of interest include Latin America, Russia, Eastern Europe and the Middle East, said Stephan Flagel, managing director and head of indices in London.

Andrew Cope has joined Daiwa Securities in a new role as head of secured equity financing and supply, part of the Japanese bank’s extension of its derivatives platform.

Hong Kong Legislative Council will begin debate on regulatory reform today, including the possible merger of the Hong Kong Monetary Authority and Hong Kong Securities and Futures Commission.

A proposed law aimed at pushing all derivatives on an exchange to be regulated by the U.S. Commodity Futures Trading Commission is being predictably shot down by over-the-counter participants.

The Federal Reserve’s commitment of USD800 billion to help loosen the credit markets reeled in the CDX North American Investment Grade index series 11 to 246.5 basis points at press time.

Morgan Stanley has closed down its Hong Kong-based strategic finance group amid a round of job cuts made at the firm last week.

Société Générale is recommending investors who think volatility will ease over the short-term sell ratio put spreads expiring in January or February on the VIX.

JPMorgan has cut Michael Moriarty, a managing director in structured alternative investments in New York.

Richard Gee, global head of program trading, index arbitrage and exchange-traded funds at JPMorgan in New York, has left the bank amid a raft of layoffs.