Risk magazine
FIA opposes CME-CBOT merger
The Washington-based Futures Industry Association (FIA) has opposed the proposed merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT) on the grounds that it would reduce competition among US exchanges.
EDHEC: fraud is biggest hedge fund risk
More than three quarters of all hedge fund defaults are due to fraud or misrepresentation, according to a study by economists at the EDHEC business school in Nice.
JP Morgan hires EMEA equity marketing head
Adrian Valenzuela will join JP Morgan in London in May, as head of equity derivatives flow marketing for Europe, the Middle East and Africa.
No need for more hedge fund regulation, US group says
Despite its growth over the last seven years, there is no need to improve regulation of the private investment industry, a US government working group reported yesterday.
Dresdner poaches equity derivatives sales team from Wachovia
Dresdner Kleinwort has hired a team of equity derivatives sales staff from Wachovia to expand its US equity derivatives operation.
DME announces launch date
The Dubai Mercantile Exchange (DME), the Middle East’s first energy futures exchange, will officially launch on May 1.
Moody’s: credit cycle at tipping point
The rate of defaults on speculative-grade corporate debt was at its lowest level for two decades in 2006, but will double in 2007, according to New York-based rating agency Moody’s.
Dresdner hires head of distribution
Dresdner Kleinwort, the investment banking arm of Dresdner Bank, has appointed Stefan Guetter as head of global distribution, replacing Garrett Curran, who has become head of global finance.
US property slowdown could increase risk for CDOs
Decelerating house price inflation and competition among commercial mortgage lenders could hurt US structured credit products, according to a Dresdner Kleinwort report.
Pension funds at risk from currency fluctuations
State Street Global Advisors (SSgA), the investment management arm of New York-based State Street Corporation, has warned UK institutional investors they are overexposed to carry trades and to currency-fluctuation risk in their portfolios.
BGC admits "material weakness" in reporting ahead of IPO
Interdealer broker BGC has admitted a "material weakness" in its internal accounting, which it says could put it in breach of the US Sarbanes-Oxley Act after it lists its shares later this year.
CME to launch first exchange-traded credit derivatives
The Chicago Mercantile Exchange (CME) is to begin trading credit index event contracts, the first exchange-traded credit derivatives contracts, by June this year.
Risk amplifiers will endanger credit market, report warns
High levels of speculation, leverage and securitisation mean the credit market is riskier than it appears, according to research published this month by the UK independent financial research company Clear Capital.
Bear Stearns to repay millions to collapsed hedge fund
New York-based bank Bear Stearns has been ordered to repay at least $125.1 million to the collapsed Manhattan Investment hedge fund, for failing to report alleged fraud that could have cost investors up to $400 million.
Dougan chosen to replace group chief at Credit Suisse
Brady Dougan, chief executive of Credit Suisse’s investment banking division, has been appointed successor to Oswald Grübel as the group’s chief executive. Grübel plans to retire at Credit Suisse’s annual general meeting on May 4.
CBOE files for demutualisation on way to IPO
The Chicago Board Options Exchange (CBOE) has filed for demutualisation and restructuring as it heads for an initial public offering (IPO). The exchange'smembers will receive stock but lose their trading rights as part of the process.
Deutsche hires new wealth management head in Asia
Deutsche Bank has reshuffled its wealth-management heads in Singapore, following the poaching of Ravi Raju from Citigroup’s wealth-management arm.
Moody’s: “unprecedented” interest in CDPCs
New York-based ratings agency Moody’s has said it is currently processing proposals for 24 rated credit derivatives product companies.
CME prepares to launch hurricane derivatives
The Chicago Mercantile Exchange (CME) will launch hurricane index futures and options on March 12.
JP Morgan hires retail structured products head
JP Morgan is making changes within its equity derivatives division in Asia, as part of a global reorganisation of its derivatives sales force, to create a retail-focused cross-asset-class group.
BoA does deal with Justice Department over municipal bonds
Bank of America, the second largest US bank, has signed a 'leniency agreement' with the US Department of Justice, in return for the bank’s co-operation with the department’s investigation into municipal derivatives.
Eurex to open hub in Dubai
Eurex, the world’s largest derivatives exchange, will open a trading hub in Dubai in April, subject to approval from the Dubai Financial Services Authority.
F&C poaches hedge fund specialists from London & Capital
London-based asset manager F&C has hired a team of four hedge fund specialists to launch a fixed income hedge fund within its alternative investments division.
BarCap structuring second collateralised forex deal
Barclays Capital is planning another bespoke collateralised foreign exchange obligation (CFXO), worth €20–€50 million, after closing its first at the end of 2006.