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Liquidity in variance swaps on blue-chip European single stocks has increased around five-fold in the last six months.

Options traders witnessed heavy volumes in euro puts/Swiss franc calls last week as market players looked to the options market to express views on a further drop in the euro against the Swiss franc in the spot market.

Swiss Re has dipped its toes into the U.S. equity derivatives market for the first time with the launch of a proprietary trading desk.

Société Générale has pulled out of the Australian equity derivatives market and has shifted its Sydney-based team to Hong Kong.

Neuberger Berman Technology Management envisages entering over-the-counter contracts to hedge exposure in its recently launched long/short technology hedge fund.

--Alain Dubois, chairman of the managing board of Lyxor Asset Management, a wholly owned subsidiary of Société Générale with some EUR40 billion (USD48 billion) under management, commenting on a recent European Commission recommendation clarifying the use of derivatives in certain types of funds.

Tricadia Capital, a collateralized debt obligation manager and proprietary credit derivatives trading operation, has hired Shaloub Razak, a credit derivatives trader at Bear Stearns in New York, in a similar role.

Wachovia Securities has hired Eric Glicksman, head of equity structured products at Lehman Brothers in New York, and plans to further grow its structuring team.

U.S. broker Axiom Global Partners has executed a USD1 billion single credit derivatives trade, believed to be the largest ever trade of its kind.

Derivative houses in Australia including ABN AMRO and Macquarie Bank are looking to establish an interbank market for inflation-linked derivatives, potentially within the next year.

Conventional wisdom says that if you offer traders stock options, which pay out if the firm performs well, they will take more risk in order to boost their performance and get paid more.

Fubon Securities, the first Taiwan-based securities house to invest in synthetic collateralized debt obligations (DW, 5/5), is considering managing its first deal later this year.