Derivs - Regulation

A U.S. Bankruptcy Court judge has granted Lehman Brothers Holdings the right to employ Natixis Capital Markets as a strategic advisor, with special focus on its derivative positions.

A court hearing in New York this morning to determine whether Lehman Brothers will be able to realize the value of certain in-the-money swaps by auctioning them off may not apply to objecting parties.

Latham & Watkins has hired Maysa Ibrahim as counsel in its Dubai-based offices with responsibility for establishing a derivatives team there.

With interest rates around the globe plummeting, some market participants are beginning to wonder what would happen if the recipient of payment under a derivative contract is suddenly in the position of owing money.

Credit default swaps on GMAC Financial Services closed at 54 points upfront today, up from 53 around midday and 50 earlier on in the week.

The price for cash settling loan-only credit default swaps referencing Canadian door maker Masonite International Corp. has landed at 52.5%, meaning protection sellers will pay out 47.5 cents on the dollar.

Rita Csejtey, formerly a v.p. in global structured products at Radian, has been hired by the Federal Reserve Bank of New York as a supervising examiner, credit risk advisor.

Novations are proving a sticking point in the move to see credit default swap transactions confirmed on the same date as the original trade. Since three parties are involved in novations when counterparties trade in and out of positions, the transactions take much longer to confirm.

Pilgrim’s Pride, the chicken and prepared foods company that filed for Chapter 11 on Monday, will not need a settlement auction because credit default swaps on the name were virtually non-existent.

Allen & Overy has appointed Alan Ewins as head of the law firm’s Asian financial services group. He replaces Simon Berry, who resigned in October.

A hearing to determine whether Lehman Brothers Holdings Inc. can secure court approval to start selling in-the-money swaps to expedite payments to creditors has been adjourned.

The Depository Trust & Clearing Corp. plans to report on non-standard credit default swap transactions by expanding the capabilities of its Trade Information Warehouse.