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Deutsche Bank and Credit Suisse First Boston separately are looking to enter the weather derivatives market for the first time. The move is significant, according to weather traders in the U.S. and Europe, because both likely would be able to bring corporates into the market via their lending and investment banking relationships, and both are large, well capitalized firms.

The U.S. dollar likely will appreciate to between JPY125-127 over the next two-months and to take advantage of the move Ken Landon, senior currency strategist at Deutsche Bank in Tokyo, recommends investors purchase dollar calls or buy the greenback outright in the spot market.

Heightened expectations that the European Central Bank will cut interest rates in line with the Federal Reserve following last week's 50 basis point U.S. rate cut are driving demand for over-the-counter Euribor corridor swaps. The trades are designed to take advantage of the growing interest-rate differential between ECB and Fed short-term rates, explained Mathias Echene, v.p.-structured products marketing at Schroder Salomon Smith Barney in London. Investors in Germany, France Belgium and Luxembourg have been piling into the positions in sizes of USD50-100 million (notional), he said.

Systeia, an alternative investment hedge fund management company in Paris, has hired Dr. Julien Lederer, a mathematician from the University of Paris, to develop trading models, according to Jean-Louis Juchault, ceo. Juchault formed Systeia earlier this year with David Obert. Both had previously worked together at Banque de Reescompte et de Placement Gestion (Barep), an alternative investment manager with EUR5 billion (USD4.4 billion) under management. Systeia hopes to have some 10-15 traders on board by year-end. Lederer could not be reached.

Sal Oppenheim Jr. & Cie has over the last several weeks been pitching exotic reverse convertible structures to its client base of brokers as their customers look to get to grips with volatile equity markets showing no clear direction. Aside from classic reverse convertible, the German firm has also been structuring reverse converts with up-and-in calls and down-and-out puts, according to Christina Mägerlein, senior v.p. in the retail products group in Frankfurt.

Jonathan Ende, managing partner at New York-based venture capital firm NetCentric Partners, has joined Lehman Brothers as head of structured finance marketing to hedge funds in New York. A spokeswoman in New York said that Ende "will work to help develop and market our strong array of financing and structured credit capabilities to the hedge fund community." She declined to elaborate on the types of structured products that Ende is to market, or the timing of the move. Ende was unavailable for comment.

Long Island Power Authority is looking to enter an interest-rate swap to convert a $100 million fixed-rate bond it issued last week into a synthetic floater in order to better balance its debt portfolio and cuts its cost of funds. Lehman Brothers, which underwrote the bond deal, also will act as swap counterparty.

Credit Lyonnais is beefing up its interest-rate derivatives desk in Taiwan and as part of the effort has just brought aboard Max Shyu, head of interest-rate derivative trading at HSBC in Taipei, according to Frederic Laine, head of Asia derivative products at CL in Hong Kong. Shyu joins as head of interest-rate derivatives trading-Taipei, replacing Vincent Lien, who moved to Standard Chartered in Taipei earlier this year. Shyu, who could not be reached, reports to Rosy Tsorng, treasurer in Taipei, and to Laine in Hong Kong.

Taipei-basedBank SinoPac is hoping to become the first domestic firm to offer equity index options, and down the line, equity swaps. The bank is applying to Taiwan's central bank, the Central Bank of China in Taipei, for approval, according to Henry Chang, head derivatives dealer. SinoPac plans to target its private banking customers who are looking for exposure to other markets via stock indices including the Nikkei 225 and NASDAQ Stock Market.

Madrid-based Beta Capital MeesPierson, a wholly owned subsidiary of Fortis Bank, is considering applying for a bank licence, a move that would allow the firm to expand the range of derivatives-based products it offers. If the investment house becomes the Spanish branch of Fortis Bank it would be able to offer banking products, such as guaranteed funds, in its own name, according to an official in Madrid. At present Beta Capital structures products, such as reverse convertibles, but has to issue these under a third party's name, since under Spanish law investment houses are not permitted to offer banking products.