Equity markets
Volatility of volatility spike drives options liquidity squeeze
Volatility of volatility spike drives options liquidity squeeze
Short-selling bans spark confusion over index trades and extraterritoriality
Dealers say volumes have been light as market participants try to work out scope of bans – with confusion arising on index trades and the geographic reach of the rules
Protected banks welcome new European short-selling bans
Regulators need to protect markets from "rumours and false information" say bans' supporters
Korea short-selling ban leaves dealers reeling
Korean regulators unveiled a three-month short-selling ban in a bid to calm equity markets following a 17% fall in the Kospi since the start of this month. The prohibition went live on August 10, forcing major dealers to unload excess stock inventory at…
Korean authorities crack down on equity-linked warrants
Arrested warrants
Quant Congress USA: BMW options "a recipe for disaster", says Dupire
Naive treatment of interaction between skew and correlation means writers of best-middle-worst options will face huge hedging losses, says top quant
Citi reverses stance on Lehman notes offering $136m group repurchase settlement
Citi has become the final major bank to reach a repurchase agreement with Hong Kong regulators on Lehman Brothers related structured products. But Lehman-related enforcement action is expected to rumble on.
Banks call for equity to be counted in LCR
A taste for diversification
Korean regulator cracks down on scalpers arbitraging warrants market
The FSC in South Korea has introduced new measures aimed at stopping scalpers from making undue profits in the warrants market. But dealers are concerned the new rules are inadequate and may shrink the market unnecessarily as a consequence.
Challenges ahead for access derivatives in Asian markets
Gateway to Asia
Structured hybrid products prove popular in Korea
Reinforcing structures
Hedge funds play dangerous volatility game
A dangerous game
Equity derivatives
Special report
New equity derivatives definitions imminent
Next step for equities
Short volatility exposures pose risks
A dangerous game
Global events fail to rock dispersion trades
Recent global events have not dented the popularity of dispersion trades among hedge funds, claim bankers
Artradis collapse a failure of judgement, not risk management, says co-founder Diggle
Artradis was one of Asia’s most successful hedge funds until it hit difficulties in 2009 and 2010 that resulted in losses of $700 million and culminated in its closure in late February. But the fund’s co-founder says error of judgement and a lack of…
Structured product investors hit by sharp fall in Japanese equities
Investors have likely taken hits on legacy structured trades, though bankers say it is too early to judge the full impact of the Friday earthquake on the Japanese structured equity market. There are some signs, however, that investors might already be…
Derivatives exchange volumes leap 26%
Derivatives exchanges report a spike in trade volume on the back of growth in Asia-Pacific and Latin America, and strength in the commodities sector.
EU's Libyan asset freeze casts cloud over hedge fund FM Capital
FM Capital - a UK hedge fund with ties to Libya - gets HM Treasury licence to keep trading, but dealers are wary
Equity structuring resurfaces as Japanese investors hunt for yield
Japan has emerged as a fertile market for equity funds and now a structured equity fund has also caught the eye of Japanese investors hungry for yield in a low-interest environment.
StanChart to repurchase HK$1.48bn of Lehman ELNs; regulatory probe continues
Standard Chartered has reached a resolution with the SFC and HKMA to repurchase HK$1.48 billion of equity linked notes issued by Lehman Brothers but admitted no liability related to mis-selling the notes. Regulators said the bank should have performed…
Deutsche Bank's securities and exchange-trading operations banned in Korea for six months
Deutsche Bank's securities and exchange-trading operations have received a six-month ban in Korea for making 44.87 billion won ($40 million) in ‘illegal profits’ from market manipulation, following an investigation by Korean regulators; prosecution of…
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Yield enhancement on Asian equity indexes through call overwriting