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Enron recently sold a summer season basket option based on the temperature in Marseilles, Berlin and London. The trade was noteworthy because it is believed to be one of the first basket options transacted in the European weather derivatives market, according to Philippe Chauvancy, v.p. business development at United Weather in Jersey City, N.J. United Weather brokered the several million dollar (notional) transaction on behalf of a French financial institution, Chauvancy continued. He declined to name the counterparty.

Masatoshi Inoue, managing director and head of equity derivatives at Deutsche Securities Ltd,Tokyo in Japan, has resigned to pursue his own interests, according to a spokesman. The spokesman at Deutsche Securities, part of the Deutsche Bank Group, declined comment on a potential successor.

Billions of dollars of derivatives flows from U.S. banks could be subject to transaction size limits and collateral requirements when the Federal Reserve implements a law next month. The Federal Reserve by May 12 must introduce some sort of regulation regarding restrictions on derivatives transactions between banks and non-bank affiliates under the 1999 Gramm-Leach-Bliley act. The 1999 act was intended to modernize financial services statutes in the U.S. This regulation would seek to prevent the bank from being subjected to loss due to derivatives transactions with affiliates.

Bank of America has asked Moody's Investors Service to rate a EUR360 million (USD318 million) collateralized debt obligation because a Fitch rating alone could not shift the deal. Hans-Jurg Lips, managing director structured credit products at Bank of America in London, said the firm's experience in the U.S. and the collateral seller's experience in Italy lead it to believe a Fitch rating alone would be sufficient to move the deal in Europe.

Y.J. Rhee, interest-rate derivatives trader at HSBC Korea in Seoul, is joining Credit Agricole Indosuez in Seoul as head of derivatives trading. In this new position Rhee will look to build up the firm's derivatives trading book, offering interest-rate and fx products said J.H. Kim, head of sales, and the other member of the derivatives desk. Kim added that investors in Korea are especially keen on using currency swaps, allowing them to convert off-shore investments into won. He mentioned that Credit Agricole Indosuez would likely become involved with the credit derivative market when regulations are loosened. Rhee could not be reached by press time.

Lehman Brothers, believing that the Australian dollar has bottomed out, is recommending an fx options strategy to take advantage of Aussie upside against the mighty greenback. Ron Leven, currency strategist in Tokyo, said the Aussie dollar is forming a base around USD0.50 and has the potential to reach USD0.53 in the near future. Leven suggests buying a three-month at-the-money Aussie dollar call with a knock-out placed at USD0.49 and selling a three-month Aussie dollar call struck at USD0.53, at an approximate cost of 70 bps. On Wednesday, the Aussie stood at USD0.5027.

Hedge Funds of Australia, an asset management firm based in Sydney, is planning to launch an on-shore hedge fund that will make extensive use of derivatives. Spencer Young, managing director, said the firm is in the planning stages and looking for a start date in the next 12 to 18 months. Young declined to comment on a specific strategy for the fund, citing stiff competition in the Aussie market, but noted he's looking to hire three to four asset managers.

Five-year protection on Eastman Kodak widened by about 10 basis points to 95 basis points (mid-market) last week after the company announced its first-quarter results on Tuesday. The photographic supplies and equipment company reported that its first quarter profits fell to USD150 million, a decrease of 48% from the previous year's first quarter.

Santander Central Hispano Asset Management has written a roughly EUR300 million (USD264.74 million) exotic put on shares of Banco Santander Central Hispano. The sale was designed to provide equity exposure in a EUR300 million guaranteed note the asset manager launched last week.

Korean security house Good Morning Securities is looking to hire two marketers/structurers for fixed-income derivative products as part of a push into the over-the-counter derivatives market and already has hired two traders to guide the process. J.W. Ahn, Korean won interest-rate derivatives trader at Deutsche Bank in Seoul, is taking the new position of head of new products trading, responsible for fx and interest-rate products. Mino Rhee, Korean equity derivatives trader at Commerz Securities in Tokyo, will head up equity derivatives trading, relative value and arbitrage.