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CME hires ex-UBS executive

The Chicago Mercantile Exchange (CME) has appointed Michael Kobida as director of financial management at the CME Clearing House for futures contracts, reports RiskNews' sister publication, Dealng With Technology .

ABN Amro wins China derivatives licence

ABN Amro last week joined the elite group of foreign banks authorised to trade foreign exchange derivatives in China after winning a licence from regulator the China Banking Regulatory Commission, reports RiskNews’ sister publication, FX Week .

NAB to reopen options desk

National Australia Bank (NAB) hopes to reopen its currency options desk in the "near term", said chairman Graham Kraehe last week, reports RiskNews' sister publication, FX Week .

Merrill Lynch snaps up Entergy-Koch

Merrill Lynch is set to acquire the energy trading businesses of Entergy-Koch Trading (EKT), a venture of New Orleans-based Entergy Corporation and Wichita's Koch Industries.

Smile dynamics

Traditionally, smile models have been assessed according to how well they fit market option prices across strikes and maturities. However, the pricing of most recent exotic structures, such as reverse cliquets or Napoleons, is more dependent on the…

Correlating market models

While swaption prices theoretically contain information on interest rate correlation, Bruce Choy, Tim Dun and Erik Schlögl argue that, for any practical purpose, this information cannot be extracted. Care must therefore be taken when pricing correlation…

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