Month: October 2008

RBNZ Makes FX Gains

The Reserve Bank of New Zealand (RBNZ) achieved gross mark-to-market gains on its open foreign exchange position of NZ$344 million ($228 million) in the year to 30 June 2008, according to the central bank’s annual report released this week. The report also provided details of its new foreign reserves management policies announced last year (see […]

Bombay Stock Exchange Launches FX Futures

The Bombay Stock Exchange (BSE) launched its US$/INR currency futures contracts on 1 October, with 65,000 lots, worth an underlying $65 million, traded on day one. The contract specifications – sized at $1,000 – are the same as those of the National Stock Exchange of India which launched its contract on 29 August and which […]

KIKO Crisis Kicks Korean SMEs

The crisis over Knock In Knock Out (KIKO) currency options sold to Korean small to medium enterprises (SME) is escalating. A weakening Korean Won, now approaching five year lows, is resulting in further losses by SMEs who had bought KIKO options (effectively range options) on the erroneous expectation of a stable US$/KRW exchange rate. Taesan […]

SuperDerivatives Expands Nordic Network

A group of some of the biggest banks and blue-chip companies in the Nordic region has chosen SuperDerivatives’ derivatives front office trading platform to help them manage their derivatives portfolios and execute derivatives online. Companies including Nordea, Danske Bank, SEB, Handelsbanken, DnBNOR, Carnegie, FIH Erhevsbank, Glitnir, Landsbanki, A.P. Moller Maersk and Western Bulk Carriers have […]

More Changes at Saxo

Saxo Bank confirmed last week that Albert Maasland has been appointed head of it’s UK office with additional responsibility for the US and Middle East. The move is part of a major restructure at the online investment bank to improve operating efficiency. In his new post, Maasland, who was previously head of Europe, now reports […]

On the Move…

Merrill Hires Chapman Merrill Lynch has hired James Chapman as director and head of Asia power investment banking along with a five-member team, all previously from Lehman Brothers. At Lehman, Chapman was also responsible for supporting the sourcing and execution of foreign exchange, interest rate, and commodities hedging and other risk management solutions across power […]

Tech Corner

DerivActiv, a provider of derivative valuations, will provide a free 12-month swap payment cashflow verification report to new customers. The report will review one year’s worth of payments for all types of derivatives, including plain vanilla swaps, swaptions, knock-outs, CMS swaps, equity swaps, foreign currency swaps, range accrual swaps and other exotic derivative structures. The […]

Around the World

Is it better to call your representative than trade? A present for Warren Buffet and why times are not tough for all of us… Lobbying your government representative is all very well, but do they listen? Last week, an email dropped into the inbox of the editor of Profit & Loss from industry association SIFMA, […]

And Finally…

The bank-client relationship is often a touchy one, especially when the client is a professional trader. In my experience the service banks offer in providing liquidity is often under-rated by professional traders on the buy side. Indeed there was much heated debate about spreads quoted during recent weeks at Profit & Loss’s Forex Network Chicago […]