SG expands equity derivatives team in Japan

Masakatsu Hayashi heads the team, which also comprises Akira Suzuki, Kagemasa Mouri, Kohei Hayashi and Yuichi Yamashita.

Hayashi is a 19-year Daiwa equity veteran, who since 1996 worked on the Japanese firm’s Japanese long/short strategy. Suzuki and Yamashita joined Hayashi’s team at Daiwa in 2000, Mouri joined them in 2002, and Kohei Hayashi came on board the following year.

They will start running their sophisticated trading models in mid-September, said Bernard Desforges, head of equity derivatives, Asia-Pacific at SGCIB.

SGCIB said of the team: “Their performance both in absolute and risk-adjusted terms is excellent and puts them as leaders among systematic long/short strategies in Japan. Their track record at Daiwa shows annualised returns in excess of 20% and a Sharpe ratio [reward per unit of risk] of around three."

“Their integration has been very smooth; strategies are ready to deliver after a few weeks,” added the French bank. SGCIB said it is exploring new arbitrage ideas and is already extending the scope of strategies run in Asia. For this purpose, new appointments are already being discussed.

The firm’s equity derivatives arbitrage team in Japan has grown to 14 traders from six a year ago. Meanwhile, the bank says it now accounts for more than 10% of daily cash volume in Japanese equities.