Daiwa builds European delta one trading book

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...