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The Japanese credit derivatives market started to quote credits with the International Swaps and Derivatives Association's modified restructuring language Monday, after most dealers had agreed on this date. Market makers expect this to boost end user participation and Manabu Yokitomo, deputy manager of credit derivatives and structured finance at the Tokio Marine & Fire Insurance Co. in Tokyo, validated their claims. He said, "we're hungry for Japanese names and will look to invest as soon as the modified restructuring language is common," said Yokitomo. "We'll be more comfortable in investing in Japanese names [under the new language]," added Yokitomo. The insurer already sells credit protection in Japan and uses the modified language on U.S. and European names.

UOB Asset Management, the fund management division of Singapore's United Overseas Bank, expects to start buying and selling credit derivative products within three months. "We're just waiting on the paperwork," said Shee Keen Yip, fund manager in the fixed-income department. Yip continued that once the legal paperwork is out of the way the fund will look to both invest and buy protection on its underlying bond positions through credit-default swaps and credit-linked notes. Yip continued that the fund will first start using credit-default swaps in smaller increments, between USD5-10 million, declining to elaborate on an estimated total notional exposure. It has a fixed-income portfolio of SGD1.2 billion (USD669 million).

Heng Koon How, foreign exchange options strategist at ABN AMRO in Singapore, resigned last month. He reported to Stan DeGroot, Asian head of foreign exchange options. DeGroot referred calls to a spokesman. Li Koon, spokeswoman in Singapore, said the firm is looking for a replacement, declining further comment. An official at ABN said he believes How is joining Standard Chartered in Singapore. A currency trader at StanChart declined all comment. How could not be reached.

Deutsche Bank is gearing up for a push into marketing equity structured products to U.S. investors, in advance of a change in legislation that is expected to open up the market. Johan Groothaert, head of equity structured products in London, said the firm is awaiting legislation to take effect that would allow it to sell products, such as reverse convertibles and equity-linked notes, to retail investors in the U.S. Currently securitized products structured with over-the-counter options are prohibited for sale to retail investors because they are considered options, but starting in January they will be deemed contracts, said Groothaert. Another official at the bank adds this is part of a broader package of Securities and Exchange Commission rule changes.

Deutsche Bank has hired Eric Soderlund, an equity derivatives salesman at UBS Warburg in New York, to fill a similar role, according to market officials. Headhunters said Soderlund's hire is one of several the firm's equity derivatives group is planning to make over the next several months to build its sales team. He reports to Rick Goldsmith, head of equity derivatives sales.

CIBC World Markets has hired Tom Wadsworth, an equity derivatives trader at J.P. Morgan in New York, in a similar position. Wadsworth fills a position left vacant by the departure of Richard Suth, who left the firm in July after five years, said Paul Beck, head of equity derivatives trading. Beck added that hiring Wadsworth is part of an overall expansion of the equity derivatives group in both New York and Toronto. CIBC is looking to hire two more equity derivatives marketers in New York and has recently hired two marketers for its Toronto division.

BNP Paribas has hired Alan Dunne, a foreign exchange technical strategist at Bank of America in Singapore, as a London-based strategist for the major developing currency markets in the European time zones. Dunne said he will cover currency and local debt market strategy, including foreign exchange derivatives strategy and interest-rate swaps, for Poland, Hungary, South Africa, Turkey and the Czech Republic.

Deutsche Bank has structured an offshore note linked to the Dow Jones EURO STOXX 50 Index that seeks to generate income and growth for U.K. retail investors. It is structured by selling investors two put options on the index, according to Benedict Peeters, a director in the structured products group in London. The firm is structuring it now because clients have been asking for products which protect them from an initial fall in equity prices in light of global equity market weakness.

One month U.S. dollar/Japanese yen implied volatility dropped almost 2% last week to 9.1%, near a two-year low, as traders scooped up dollars on the view that strikes on Afghanistan have gone smoothly so far. Implied vol had hovered between 10.5-10.8% earlier in the week. Traders said the drop in vol was partly caused by a quiet spot market. "All the vol looks pretty cheap right now, especially considering the political turmoil we're in," said one trader. Spot was trading at JPY120.14 Thursday.

Enron is working on a swap product that will allow U.K. corporates to hedge exposure to rising gas prices. In a typical transaction, a corporate will pay an up front premium and enters a gas swap with Enron. If gas prices reach a predetermined strike price the corporate receives an offsetting payment from Enron, according to Catherine Woolgar, a trader in the weather risk management group in London.

CreditTrade has put on hold its ambition to move credit derivatives customers away from voice brokered trades to transacting on its electronic platform. Increasing volatility, caused by last month's terrorist attacks in the U.S., means investors want to conduct transactions with a person because voice-brokers can give the story behind the credit, according to Paul Mullin, global head of sales in London. But Mullin added that its long-term plans still revolve around its electronic platform.