Derivs - People and Markets

Standard Chartered has hired Stephen Patterson as a director of structured credit sales, a new role at the bank with a focus on hedge funds.

The absence of an agreed cross-currency interbank lending rate in the Middle East is hindering the use of derivatives in the region.

Authorizing derivatives for use under Sharia law is controversial and should be subject to a more rigorous process, according to Mohamad Nedal Al-Chaar, secretary-general of the Accounting and Auditing Organization for Islamic Financial Institutions in Bahrain.

London-based VCM Fund Management, a hedge fund and seeding firm, has launched the VCM K2 Alternative Energy Segregated Portfolio, a global equity long/short and derivatives fund that invests in companies positively affected by climate change.

Hapoalim Securities, the U.S. broker/dealer of Israeli giant Bank Hapoalim, is getting into equity derivatives and has hired Matthew Nadel to lead the effort.

Paramax International has reached a settlement with UBS pertaining to litigation from a credit default swap the Swiss bank entered into on its USD2.25 billion TABS 2007-7 hybrid collateralized debt obligation.

BNP Paribas has hired Arne Groes as its new global head of flow credit trading in London, replacing Eric Dumas, who has taken leave.

Investment manager Oak Hill Advisors has expanded its structured products group with the appointment of three former Lehman Brothers structured credit professionals.

The China Banking Regulatory Commission is aiming to allow close-out netting and has asked the International Swaps and Derivatives Association to come up with draft language.

Chris Hentemann and Paul Jablansky, former heads of the global structured products and structured portfolios groups, respectively, at Banc of America Securities have co-founded 400 Capital Management and will launch its maiden fund, a credit multi-strategy fund.

Merrill Lynch cut approximately 25 people from its structured products group this week and further paring and reorganization will happen soon, said a Merrill official close to the group.

The volume of recovery rate swaps trading hands is taking off amid rising defaults in investment-grade names and a series of unexpected recovery values landed in the recent settlement auctions for credit default swaps.