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Citigroup has published a research report warning that French derivatives houses may have to curtail their equity derivatives structured products business because of the earnings volatility new accounting rules will generate when they kick in next year.

Credit derivatives have enabled the Israel Discount Bank of New York to extend its leasing business to larger size corporates as well as grow the average size of its deals.

Rupert Barrett, equity structured product salesman at Citigroup in London, has left the bank.

Mike Egerton, equity structured product salesman covering institutional clients in the U.K. and Ireland, has left the firm after just over a year (DW, 19/05/03).

Financial Services Authority and U.K. government guidelines announced earlier this month will likely boost the structured product market, according to bankers.

The U.S. dollar weakened against the Japanese yen last week and broke through a significant options barrier at JPY108 to reach JPY107.60 as DW went to press on Thursday.

Goldman Sachs has hired Richard Suth, head of structured equity derivatives trading at CDC IXIS North America in New York, in a senior equity position.

The hedge fund industry will likely bifurcate into those offering low risk, single digit returns and those integrating high risk, high return strategies.

PanEuroLife, a Belgian insurance company, has bought a derivatives fund structured by Société Générale.

The International Swaps and Derivatives Association's equity derivatives market practice committee has set up a documentation group in London.

Insurance companies and the Italian stock exchange have seen a huge increase in the amount of structured products they are selling after the regulator imposed restrictions on what products banks can sell in the wake of the Parmalat scandal.

Domestic Japanese derivatives houses, including Nomura Securities, Daiwa Securities SMBC and Mizuho Securities, have beefed up their structured credit expertise and are now taking on their international rivals.