Risk magazine/News
RWE counts €11 million Enron cost but inherits staff
RWE, Germany’s second largest utility, believes it has the largest energy trading exposure in continental Europe to Enron Europe, the London-based subsidiary of the bankrupt energy trading firm. RWE Trading, the marketing and trading arm of the Essen…
Currency swap illiquidity may hit Korean cross-border ABS growth
The Korean cross-border asset-backed securitisation (ABS) market could see growth stymied this year due to a lack of liquidity in the currency swaps market. While both Hyundai Capital and Samsung Capital are expected to issue separate $300 million cross…
Credit Lyonnais Asian equity derivatives head resigns
Eddie Tam, Credit Lyonnais’ prominent head of Asian equity derivatives sales in Hong Kong, has abruptly resigned from the bank.
Fimat signs up for Egar's energy trading system
Fimat, the US-based brokerage firm, has signed up to Egar Technology’s Focus system for trading energy and commodity derivatives. Egar is a New York-based technology firm that offers trading systems for over-the-counter and exchange-traded interest rate…
JP Morgan Chase launches short-term FX predictor
JP Morgan Chase today launched an Economic Activity Surprise Index (Easi) that it claims will help users predict short-term currency moves.
JPMC snares four equity specialists from Merrill Lynch
JP Morgan Chase has snared four equity derivatives experts from Wall Street rival Merrill Lynch. The foursome includes Merrill co-heads of risk trading, Matt Celebuski and Eric Moore.
Freddie Mac set to issue more callable debt
Freddie Mac, the US government debt agency, is looking to issue another large callable bond in the next few months, following its record $2 billion, three-year callable issue with a one-year embedded option last month. The agency is seen as meeting…
WestLB derivatives head quits for the arts
WestLB has hired Ian Clifton as its new head of derivatives within its global financial markets (GFM) division, after the previous head, Dominic Palfreyman, quit to pursue a career in the performance arts.
Reliant restates 2001 earnings due to accounting changes
In a further sign of Enron’s impact on US accounting procedures, energy company Reliant Resources said it has discovered errors in its financial accounting that will cause it to raise 2001 earnings by between $100 million and $130 million.
Ritossa takes over as Barclays Capital forex head
Barclays Capital, the investment banking division of the UK's Barclays, has hired Ivan Ritossa as global head of foreign exchange. He joins from Lehman Brothers, where he gained a strong reputation for building up the Wall Street firm's forex operations…
Citibank and SSB integrate Asian derivatives sale
US financial conglomerate Citigroup will combine its Citibank and Salomon Smith Barney (SSB) Asia-Pacific regional sales unit for fixed-income derivatives and cash products.
Cargill signs up to patsystems
Chicago-based Cargill Investor Services (CIS) has signed up to a derivatives trading service supplied by patsystems, the London-based software vendor specialising in electronic exchange connectivity and front-end trading.
FT Interactive Data expands forex coverage
FT Interactive Data, a provider of securities prices, has expanded its coverage of spot and forward foreign exchange markets and reduced update times from every hour to every half hour.
Credit Lyonnais looks to boost Asian derivatives team
French bank Credit Lyonnais is planning to boost its Asian credit and interest rate derivatives teams in the coming months, as part of a drive to build the bank’s structured credit business, according to Frédéric Lainé, Hong Kong-based head of fixed…
Mitsui Sumitomo launches humidity derivatives
Japan’s Mitsui Sumitomo Insurance has developed weather derivatives based on a temperature/humidity index, called a ‘discomfort-index’. They allow corporates to hedge their exposure to the risk of cooler and less humid summers in Japan.
Integral acquires margin product
Integral, the California-based financial software and services provider, has acquired Dublin-based International Financial Systems (IFS), a provider of collateralised foreign exchange trading services.
OneChicago eyes 'narrow-narrow' indexes
OneChicago will follow up the launch of single-stock futures – slated for mid-April – with the creation of 'narrow-narrow' indexes, according to William Rainer, chairman of OneChicago.
SwapsWire claims ‘imminent’ launch after tech delays
SwapsWire, a consortium-owned interdealer interest rate derivatives trading system, says it has overcome a raft of technology problems that delayed its launch. It hopes to go live "imminently" with most of its 23 shareholders, but did not offer a…
Icap launches reset risk competitor to Switchfix
Interest rate swap trading desks now have an alternative method of eliminating reset risk, courtesy of a new online matching system developed by Icap, the UK interdealer broker, called Fra-Cross.
SG equity derivatives team unaffected by Asia restructuring
SG Securities Asia’s (SGSA), the Asian equities arm of French bank Société Générale, said plans to realign its operations in Asia – ex-Japan and Australia – will not affect its equity derivatives team, according to a spokesperson in Hong Kong. The bank…
Japan resumes NPLs reduction drive
The Resolution and Collection Corporation (RCC), entrusted by the Japanese government to help reduce Japanese banks’ major non-performing loan (NPL) problems, has concluded its first securitisation deal this year. An RCC spokesperson said the transaction…
Oldest US exchange looks to energy futures
Merchants Exchange, the oldest commodity exchange in the US, plans to offer energy futures contracts for the first time. The move follows an increase in demand for cleared contracts following the bankruptcy of Enron, although Merchants Exchange said it…
Directors divided on audit reform
US corporate directors want more transparency in the reporting of derivatives positions, but are divided over how best to monitor external auditing in the wake of Enron’s fall, according to a survey conducted by the National Association of Corporate…
CBOT launches X-Funds
The Chicago Board of Trade (CBOT) today launched X-Funds, short-duration futures contracts that track the performance of a professionally selected index.