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Options staff hotly pursued

Currency options traders are finding themselves hotly pursued, as a series of high-profile moves around the world has set off a chain of demand, reports RiskNews’ sister publication, FX Week .

BNP tap Etrali for floors in China

French trading communications technology maker Etrali has done a deal with BNP Paribas to deploy its hardware on trading floors in China, says Henri Vautheny, Etrali’s general manager for Asia, excluding Japan.

Martin Wiedmann leaves UBS

The departure of Martin Wiedmann from UBS in Zurich last week sparked a guessing game among his peers over which bank he is set to join, reports RiskNews ' sister publication FX Week .

Former JP Morgan Chase derivatives strategist joins PNC

Pittsburgh-based PNC Financial Services has hired JP Morgan Chase’s former head of derivatives strategy, Gagan Singh, as managing director of asset liability management. In addition, Singh becomes chief investment officer of the company’s banking arm,…

Smile at the uncertainty

Smile-consistent alternatives to the Black-Scholes model are often too cumbersome to be used for large portfolios of exotic options. Damiano Brigo, Fabio Mercurio and Francesco Rapisarda propose an intuitive stochastic volatility model that is easy to…

An arbitrage-free interpolation of volatilities

Nabil Kahalé describes a new construction of an implied volatilities surface from a discrete set of implied volatilities that is arbitrage-free and satisfies some smoothness conditions. His method provides an excellent fit to the smile of the local…

Practical relative-value volatility trading

The rapid growth of fixed-income hedge funds has resulted in increased interest in identifying relative-value trade opportunities. Here, the author presents a consistent framework for finding value within interest rate options markets.

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