Derivs - People and Markets

Markit has hired Sal Naro, co-founder of USD3 billion hedge fund Sailfish Capital Partners, in the newly created role of co-head of equities, commodities and risk management.

Credit Suisse is marketing a variance swap strategy to institutional clients that incorporates volatility plays based on algorithms while remaining market neutral.

Citigroup senior single stock options trader in London Jean Charles Sabran has left the firm amid reported restructurings at the bank.

The fact a new electronic platform for trading credit default swap indices has launched amid a public relations crisis surrounding the product should help it succeed where previous attempts have failed, according to one user.

China’s CNY4 trillion (USD586 million) economic stimulus package has met with skepticism from equity traders in the region.

A survey by law firm Allen & Overy reveals strong support for a credit default swaps clearing house and disclosure of corporate derivative positions. Respondents were opposed, however, to bonus restrictions and short-selling bans.

Law firm Latham & Watkins has tapped Yulia Makarova from Clifford Chance to beef up its equity derivatives practice in Moscow.

Five-year credit default swaps on American International Group Inc. pulled in dramatically yesterday, along with a less pronounced tightening for two-year CDS, after the government renegotiated bailout package was announced.

The Hong Kong government may introduce a cooling off period where buyers of structured products can unconditionally terminate contracts, amid increasing concerns about counterparty risk.

Regulatory reform of the U.S. financial system must move toward a single financial regulator that has the authority to regulate currently unregulated players and opaque financial products, said Sen. Charles Schumer at a Securities Industry and Financial Markets Association summit.

The market is still digesting Circuit City Stores’ decision to file for Chapter 11. Credit default swaps on the name were so sparsely traded and the fact it does not appear in any CDS indices means it is unlikely to lead to a settlement auction.

A proposed amendment to the Hong Kong Securities and Futures Ordinance would raise the minimum portfolio requirement of professional investors to USD2 million from USD1 million.