Hyundai Securities contemplates derivatives desk

South Korea’s Hyundai Securities is currently reviewing plans to enter the over-the-counter derivatives business in South Korea following regulatory changes earlier this month that opened up the OTC market to the country's securities firms, according to Jason Song, head of sales at the firm in Seoul.

While the company has no firm plans as yet, Song said that the firm will probably set up a dedicated equity derivatives business - an area that is widely expected to see greater activity as a result of the regulatory changes. MH Kim, who is temporarily working in the firm’s international planning department, will head the team, which may also include the addition of three to five people from within Hyundai Securities.

The team will structure products such as swaps, options and index options, although the exact product range will only be determined once the firm has completed its review, due within the next two months.