Risk magazine
The vanilla explosion
Business in three- to five-year vanilla default swaps now accounts for around a third of the market’s total notional outstandings. With many dealers reporting twofold or more growth in volumes, the credit derivatives market is now in full stride.
Job moves
QUOTE OF THE MONTH: - “I can’t get rid of the stupid thing” Lev Borodovsky, co-founder of Garp, describing difficulties negotiating a transfer of ownership Source: RiskNews, January 16
ABN and Rabobank unveil new hires
Rabobank International, the international arm of Dutch co-operative bank Rabobank, has made Rutger Schellens head of financial markets activities, including capital markets, treasury and investment books businesses.
Prime broker shortcomings contribute to hedge fund risk
Hedge Funds are incurring extra operational risk as a result of inadequate prime brokerage services, according to TCA Consulting.
European short-dated rates volatility lows continue
The surge in long-dated interest rate volatility has cast its shadow over the European swaption market during the last nine months, but now at the other end, short-dated volatility has fallen.
Insurance industry moving too slowly on op risk
Insurance companies are failing to move quickly enough to offer operational risk regulatory capital charge protection coverage, according to Philip Martin, director of HSBC’s operational risk consultancy. Speaking at Risk magazine’s OpRisk Europe 2002…
Rallying cry for Italy
Italian banks are racing to catch up with their largest US and European competitors in risk modelling. Inspired by Mauro Maccarinelli, IntesaBci is leading the pack.
Sempra Energy Trading acquires Enron Metals
Sempra Energy Trading, the Connecticut-based gas, power and petroleum dealer, is to acquire Enron Metals in a $145 million cash deal.
BofA names Mixon as European head of global markets
Bank of America (BofA) has made Arrington Mixon the new European head of its global markets group. She will take responsibility for both investing and issuer clients in Europe, offering a full range of products and services, including forex, interest…
ABN’s Mulder calls for faster op risk implementation
Bankers were urged to accelerate implementation of operational risk management practices to better serve their institutions ahead of Basel II by Herman Mulder, senior executive vice-president for group risk management at Dutch bank ABN Amro, during a…
JPMC promotes Winters and Wilson
JP Morgan Chase has promoted Bill Winters and Don Wilson, co-heads of the firm's credit and rate markets business - including credit and rate derivatives - to its 15-strong executive committee.
US rule proposal could boost insurer derivatives use
The National Association of Insurance Commissioners (NAIC), an official body that develops model insurance regulations for adoption at the US state level, is considering a new accounting guideline that would allow US-based insurers to report hedge…
FSA chairman voices CDO concerns
The Financial Services Authority (FSA), the UK's principal regulator, is concerned that the rapid growth of credit risk transfers between banks and insurers/ reinsurers could affect financial stability.
Merrill loses London head of FX trading
Harry Culham has left Merrill Lynch in London, where he was head of FX trading for Europe, the Middle East and Africa.
CreditTrade strikes deal with Digital Island
CreditTrade, a credit derivatives dealing platform, plans to offer Web services that it says should cut implementation and facilities costs by 30%, while accommodating up to 5,000 transactions per day.
Renewed FX interest by funds offers prime brokerage fillip
The return of funds to trading forex has prompted a boom in the provision of prime brokerage services. Banks such as Bank of America are hiring more staff to cope with the increased demand, while others, like UBS Warburg, are building online prime…
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…
CBOT explores re-launch of corporate bond futures
The Chicago Board of Trade (CBOT) is exploring market interest in a new corporate bond index futures contract, and will decide whether to draft contract specifications within the next few weeks, according to Julie Winkler, a senior economist involved…
CORRECTION: I-Wex backs hourly data to boost weather market
A correction has been made to the final paragraph of this story, published on RiskNews, January 25. Element Re, and not Aquila, as stated in the original story, has become QuantWeather's first customer.
Isda and FpML complete integration
The International Swaps and Derivatives Organisation (Isda) has completed the integration of Financial products Markup Language (FpML) into its organisational structure.
Experts call for constant review of corporate risk practices
Risk management practices and financial reporting have been high on the corporate governance agenda since the September 11 terrorist attacks and the spate of business failures during the past year, according to speakers at a corporate governance seminar…