DrKW steps up equity derivatives effort in Asia

Dresdner Kleinwort Wasserstein (DrKW), the investment banking arm of Germany’s Dresdner Bank and part of the Allianz group, has made its first major hire following a major restructuring of its Asian operations last year. The bank named James Hong, an index derivatives expert at Morgan Stanley, head of equity derivatives trading for Japan and Asia.

Hong, who will be based in Tokyo, will report to DrKW head of global equities and Japan branch manager Jean-Francois Minier. He will specifically focus on the index options business in Japan as well as managing the Asian equity derivatives trading team.

DrKW said it restructured last year to focus on areas where the bank believed it had a competitive advantage. “Equity derivatives was one of these areas globally. We are now in effect in the second phase of strengthening these activities,” Minier told RiskNews.

Minier said he had a budget for further hires in key derivatives areas, but would choose selective talent in areas that complemented the firm’s existing capabilities. Marketing is likely to be a key area.

“Derivatives is an important business, where we believe we can have a competitive advantage both from a balance sheet perspective – from our combination with Allianz – and expertise we have already accumulated in Europe that can be transferred globally,” said Minier.

Minier added that DrKW receives roughly equal demand for basic derivatives and structured derivatives products in Asia. Its Asian equity team offers execution for single stock options, warrants, convertible bonds, exotic and fund derivatives.