NEW YORK - Morgan Stanley Capital International announced it will allow broker/dealers and banks to license for a fee the MSCI series of international stock market indexes, including its EAFE index, in order to write OTC derivatives.
"We expect the availability of OTC (derivative) transactions in MSCI (indexes) to increase greatly as a result of these licensing arrangements," said Mark Sladkus, principal, in a statement.
The move makes possible a wide array of MSCI index derivatives, including swaps, warrants, puts, calls, and options embedded in fixed-income instruments.
The Chicago Board Options Exchange asked the Securities and Exchange Commission for approval to trade options on an index of 10 major Mexican stocks.
The index, developed by the CBOE, consists of the stocks of Telefonos de Mexico, Grupo Televisa, Consorcio G Grupo Dina, Empresas la Moderna, Grupo Mexicano de Desarollo, Grupo Tribasa, Empresas ICA, Coca Cola FEMSA, Grupo Financiero Serfin and Transportacion Maritima Mexicana.
All 10 stocks trade on the New York Stock Exchange; all but Serfin also trade as individual equity options on the CBOE.
FINEX launched a futures trading satellite in Dublin, Ireland, with about 8,800 contracts trading hands in four different currency-related futures.
The first trade was placed by Paul Tudor Jones II, a founding member of FINEX and chairman of FINEX' owner, the New York Cotton Exchange.
Between the two exchanges in Dublin and New York, FINEX now offers trading from 3 a.m. to 3 p.m. EST, and 8 p.m. and 11 p.m., EST.
FINEX also unveiled two new cross-currency futures, a deutsche mark/French franc contract, and a British pound/deutsche mark contract. Most of the first day's trading was in two contracts: one on the FINEX U.S. Dollar Index, a measure of the U.S. dollar against a basket of 10 other currencies, and the other a U.S. dollar/deutsche mark contract. In coming weeks, the exchange plans to add contracts that cross the deutsche mark with the Italian lira, the Japanese yen and the Swedish krona.
Canadian Imperial Bank of Canada, Toronto, hired five former Lehman Brothers executives in a bid to boost its U.S. over-the-counter derivatives business.
Michael Rulle, a former head of equity derivatives at Lehman, will head up the CIBC/Wood Gundy global derivatives group, in New York.
Other professionals hired and their designated areas of responsibility are: Bruce Berger, trading; Frank Gelardin, marketing; Eric Claus, transaction development; and Jeff Seltzer, legal matters and credit structuring.
A spokeswoman for CIBC said the new team will work to build on CIBC's success with Canadian-dollar derivatives.