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Short-dated U.S. dollar/yen options with at-the-money strikes were being snapped up last week.

Royal Bank of Scotland is setting up an equity derivatives desk for the Japanese market and has reportedly reeled in a team from BNP Paribas to kick off the operation.

Paris-based Ofivalmo Gestion, an asset manager and subsidiary of the Ofivalmo Group which manages more than EUR8 billion in assets, and Calyon have priced a callable synthetic CDO.

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SGAM Alternative Investments is set to manage a capital protected credit-default swap portfolio structured by Barclays Capital.

"The process has become teeth-pullingly lengthy from some investors, but they are doing the right thing."--David Peacock, co-head of structured credit at Cheyne Capital in London, speaking at last week's Euromoney Bond Investors' Congress on investors increasing due dilligence of structured credit managers.

WestLB has boosted its Asian fixed-income derivatives business in Hong Kong with a wave of hires following a restructuring effort.

Paris-based Ofivalmo Gestion, an asset manager and subsidiary of the Ofivalmo Group which manages more than EUR8 billion in assets, and Calyon have priced a callable synthetic CDO. Eiffel is a seven-year CDO which can be bought back by Ofivalmo after three years. If not bought back, the coupon paid to investors steps up. It allows for multiple issues of notes with fixed, floating or hybrid spread coupons linked to a 123-name synthetic portfolio with a average rating of BBB plus. Marketing of the note started in December.

Dawnay Day Quantum, a U.K. structured investments provider, has issued a revamped version of its commodity-linked note to lure investors still interested in the asset class. Commodities Turbo II consists of a six-year option on a basket of eight commodities which includes natural gas, brent crude and zinc. The option offers 155% participation in the upside of the basket and a zero coupon bond ensures 90% of investors' capital is returned at maturity if there are no gains on the basket. The note is a year longer than Turbo I because commodity buying for typically five-year retail investment notes makes pricing more attractive beyond this date.

Lehman Brothers' Robert Lance, managing director and co-head of Asia-Pacific equity in Hong Kong, has left the firm for personal reasons, according to officials familiar with the move. Lance, who joined in 2003 from Deutsche Bank to build up the hedge fund sales desk, could not be reached. Jonathon Wharton, spokesman for the firm, declined all comment.

WestLB has boosted its Asian fixed-income derivatives business in Hong Kong with a wave of hires following a restructuring effort.

Christian Kwek, head of London equities and derivatives at BNP Paribas, has left the firm.