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Foreign exchange

Questions remain over SG rogue trader

In a conference call this morning, Société Générale's chairman, Daniel Bouton, attempted to explain how the bank came to suffer losses of almost €5 billion from a single rogue trader on its equity index futures desk, but left many questions unanswered.

Monoline bailout looking likely

As market conditions continue to deteriorate, interested parties are coming together in an attempt to save the imperilled US monoline insurers from bankruptcy.

Bad timing for Basel II

The Basel II regulations on capital adequacy came into effect on January 1 this year. Although they were intended to produce more flexible and refined methods of calculating capital requirements, some are pessimistic about how the new rules will affect…

S&P ardent on arbitrage

S&P has launched a family of indexes designed to model common arbitrage strategies in the financial markets. The three indexes comprise the S&P 500 Volatility Arbitrage, Currency Arbitrage and Long-Only Merger Arbitrage.

Commerzbank launches UK and Ireland sales

Commerzbank Corporates & Markets (CBCM) has launched a UK and Ireland Financial Institutions Marketing (FIM) sales team which includes two new hires, Eugene Collins and Steven Muzzlewhite. The initiative marks the expansion a European structured products…

Currency correlations

The US dollar has undergone a 40% decline against theeuro over the past seven years. At the same time, crude oilprices have risen over 350%, and were up 57% in 2007. Theimpact of currency on the world energy markets, and whetherthere is cause or effect…

First Dutch spark spread traded

The first OTC Dutch spark spread, which represents the generating margin of gas-fired power stations, was traded this week, brokered by Spectron.

Agencies rethink market risk rating methods

The three largest global rating agencies are reconsidering their approach to rating structures exposed to fluctuations in market value, with potentially unpalatable results for holders and arrangers of various structured credit products.

Currency correlations

While oil prices have been rising, the US dollar has staged a steady decline, leading to much speculation over the linkage between the two. Eric Fishhaut investigates their connection

S&P becomes master of the inverse

S&P has launched the S&P 500 Inverse Index, which is designed to act as a short position barometer and offer the inverse performance of the S&P 500 and is the first to be launched as a part of S&Ps family of leveraged and inverse indexes.

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