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Over the past decade, collateral has become an increasingly significant tool in the over-the-counter derivatives market, with the International Swaps and Derivatives Association estimating there is some USD1.017 trillion in use and expectations that volumes will continue to increase.

Corporate derivatives desks are busier than normal for this time of year, following a dearth of business for the first six months of the year.

Tom James, head of commodity derivatives at Mitsubishi Securities in London, is set to leave the Japanese bank to establish a consultancy to advise banks and hedge funds about launching energy trading ventures.

The first property derivative transaction using the Investment Property Databank index could be completed in the next two to three weeks, according to market officials.

One-month implied volatility jumped to 9.78% last Wednesday, having fallen to 9.16% the Friday before.

London-based hedge manager Orn Capital is preparing to launch an energy and natural resources-focused fund that will take long/short equity positions in power, gas and oil companies across the globe and overlay these investments with commodity derivatives.

Aladdin Capital Management, a collateralized debt obligation manager with five transactions under its wings, is planning to increase its participation in the structured credit market and is in the process of launching an open-ended credit fund.

Sujal Kapadia, head of U.S. corporate interest-rate derivatives marketing at Lehman Brothers in New York, has left the firm. It could not be determined whether Kapadia is heading to a competitor.

Nomura International is looking to power into the structured fund derivatives market with its recently acquired 17-strong equity derivatives team.

Mellon Global Investors, the London-based distributor of Mellon Financial Corp., will launch an absolute return bond and currency fund next month and is considering using credit derivatives alongside currency forwards and options on government bond futures.

Joachim Willnow, managing director in equity derivatives at Nomura International in London, explaining his strategy for building up its equity derivatives platform after the Japanese firm recently hired 17 equity pros.

Nascent hedge fund manager RoundRock Partners envisages entering into various derivatives and structured trades in its multi-strategy fund, dubbed AquaFund, scheduled for launch Sept. 1.