Daiwa Securities SMBC has appointed Simon Roche as head of Synthetic Trading, to build a delta one trading book covering pan-European benchmarks.
The trading book will include swaps, index arbitrage and ETFs. Roche explains that the bank will trade third-party ETFs and is aiming to become a swap counterparty to existing ETFs in the market, by leveraging on its index swap business. He says: "ETFs are having a fantastic time at the moment, with assets under management growing considerably despite the market conditions. There are clients who are concerned with counterparty risk who are not doing much over the counter business and are opting for ETFs as a way to alleviate this." He adds: "I will be speaking with the major ETF provi...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes