'Derivative News' IS A FREE SUMMARY - Nicholas Scott

SwapClear, CME & Javelin on clearing swapsBuyside readinessParticipants in the USD derivativesmarkets are braced for another year oftightening regulation. Clearinghousesand other players are seeingincreasing buyside preparedness eventhough critical issues, such as realtime processing of clearing and crossmargining, are still being worked on.At the same time, capitalization andanonymous trading continue to be keyfactors for clearers and dealers.Jeff Gooch CEO MarkitSERV sees aprogression in buyside preparedness,noting that while 2010 saw “littlereal progress beyond a few trophycleared client trades,” in 2011 firmsmade “serious progress in getting thetechnology in place.”Laurent Paulhac, MD of OTC Products& Services at the CME, says thatbuyside onboarding saw “moreacceleration back in August of lastyear” as more institutions are lookingto leverage clearing to mitigate theirbilateral risk. Paulhac says the CMEhas roughly 1300 buyside accountswith open interest while roughlyanother 1000 are in testing. He seesa “wide variety of buyside participantsgoing through the clearing onboardingprocess - from asset managers andhedge funds, to small banks.”“In some ways 2011 was a great yearof procrastination for some buysideand dealers, but going into 2012, alot of people are focused on system,back end, front end readiness,”explains Javelin CEO James Cawley.Still, he believes there is “a spectrumof readiness - some are guys areready and set to go, while others arescratching their heads. There are [also]those wishing that Dodd Frank wouldjust go away.”CME’s Paulhac explains that, as withany new transformation, there is arange from early adopters tolaggards. “Some firms may wait untilthe mandate while others may want toclear well ahead of the mandate.”For the more proactive accounts, heexplains that some firms “see thatthere could be a traffic jam and wantto clear that hurdle well in advance,”noting that once a firm enters into anegotiating process, the timeframeexpands to “weeks or months” as “theentire onboarding process takes a bitof time.”Real and potential credit problems atbanks have accelerated buyside interest inreadiness. “The credit issues facing someUS banks has accelerated the processand some firms in the latter half of the yearreally began to ramp up,” MarkitSERVCEO Gooch finds. As for US versusEurope, Gooch sees that “US clients aremore proactive than Europeans as mostperceive that some of the Dodd-Frankrules will be mandatory in 2012.” Still,he explains that buyside participants“generally find clearing operationallycomplex and expensive.”Real timeanonymous trading?Though rules for Swap ExecutionFacilities (SEFs) still need to befinalized, real time anonymous tradingand straight through processing ofclearing are key issues for the buysidein the new world of cleared swaps.Javelin demonstrated in Q4 last yearthat real time anonymous trading ofswaps in good size was achievable inunder two seconds.Javelin CEO Cawley explains thedemonstration “in part was to makea point that trades can be executedand cleared using existing plumbing”and that is not necessary to createa “death star” like clearing hub,as “trades of true market size canbe transacted within a couple ofseconds.” Cawley says that “one ofthe concerns from clients was thetime lag if a trade does not end upgoing through, but with the virtual realtime clearing, that has been effectivelyanswered.”The whole real time acceptancedebate is “really a proxy fight over theright to trade anonymously,” reckonsCawley, as firms like hedge funds andmortgage portfolios “do not want toadvertize their trading activity.”Real time straight through processingis already a feature of the CME andthe trades done through the Javelinplatform were then cleared at theCME. CME’s Paulhac believes thattwo second clearing “could becomethe norm” and furthermore reckonsthat the market “could become evenmore efficient.” Paulhac adds that theability to do real time processing is“very important for clients.” He notesthat their OTC model for clearing is“designed to do real time straightthrough processing” and explains“to do real time straight throughprocessing there is a collection ofchallenges and we’ve developed andCont’d page 403 Q3 – Q4 2011

Inflation traders calm on talk of threat to UKpension indexationPensions minister Steve Webb toldthe Financial Times this month thatscrapping the link between definedbenefit (DB) pensions and inflationcould reduce employer costs andhelp prevent closure of DB schemesin favour of less attractive definedcontribution (DC) schemes in the future.“I am saying we shouldn’t just let thependulum swing all the way to puredefined contribution,” Webb said.“What I want is to try and create anenvironment where the pendulumcan swing back a bit.” He continued:“Clearly indexation is the biggest cost[for companies].” Later, an unnamedDWP spokesperson told newswireIPE that: “We’ve committed toreinvigorating private pensions…butno decisions have been made.”In raising the subject of the costof indexation, Webb re-opened adebate that has been bubbling awaysince July 2002, when the PickeringReport recommended scrapping theobligation to index-link pensions.Unions were at the forefront ofopposition to this proposal 10 yearsago, and again, over the weekend,the Unite union general secretary LenMcCluskey warned that “a pensionwith no guaranteed increase is notreally a proper defined benefit at all,as an absence of increase could easilyhalve its value.”So after 10 years of behind the scenesdiscussion, is there some reasonwhy now might be the time to scrapindexation? And if so what will be theimpact on the inflation markets?Dr Deborah Cooper, a partner atglobal consultancy Mercer, told TotalDerivatives that the timing of there-emergence of this topic was asurprise, with little recent activity tosuggest that the government wasgiving the subject any particular thought.That said, Cooper noted “there is anongoing project at the DWP to look atsimplifying legislation that applies toDB schemes so it is bound to comeup from time to time.” Cooper warnedagainst assuming that because WebbThe biggest problemfor employers is whatto do about accruedbenefits. Governmentaction has madeaccrued rights prettymuch sacrosanct in theUK. Legislation makesthem hard to changewithout individualmember consent andit could be hard tochange the legislationretrospectively.has brought the subject up, it meansthat the government is on the brink ofdecisive action.The inflation linkage on DB pensionsused to match rises in RPI up to 5%.But some years ago the increase wascapped to 2.5% for benefits earnedafter April 6, 2005. That essentiallycreated a new mini-market in LPIderivatives, with a smaller LPI [0, 2.5]category joining the dominant LPI [0, 5].So what will the impact be on LPIand RPI derivative and gilt markets ifthe government has actually seen anopportunity to reduce some costs forUK PLC in the upcoming budget bypulling the safety net away for millionsof pensioners?According to Cooper, any impact islikely to be extremely limited. “Theinflation market is not big enough tohedge the existing indexed liabilities,there is massive demand for inflationlinkedproducts. It might just easesome of the [demand] pressure onthe market but the effect will be smallrelative to pressure already existingdue to accrued benefits.”Bob Scott, a partner at theconsultants LCP, agreed that it mightbe a mistake to get too excited aboutthe recent spate of indexation stories.He said that even if indexation wassuddenly dropped completely, “itwould only affect the future build-upof pension assets. At the momentthe private sector has more than£1trn of accrued benefits comparedto relatively small amounts of futureincrements. For example DB accrualsin the FTSE 100 run at about £5bn ayear, I doubt the national total is muchmore than £10bn a year.”And the chances of changes in theindexation status of accrued benefits ispretty much non-existent, says Cooper.“The biggest problem for employers iswhat to do about accrued benefits.Government action has made accruedrights pretty much sacrosanct in theUK. Legislation makes them hard tochange without individual memberconsent and it could be hard to changethe legislation retrospectively.”06 Q3 – Q4 2011

That said, Cooper contended that inprinciple at least, “accrued rights canbe altered without member consentprovided an actuary certifies thatthe value of the altered benefit is atleast equal to the value beforehandand trustees go through someextra compliance steps includingcommunicating with affected schememembers. This hasn’t happened sofar because indexation is compulsoryand so would still have to be provided.If indexation became voluntary, anindexed pension could be changedto a level pension, although of coursethe first payment of the level pensionwould have to be larger than the firstpayment of the indexed pension. So,if the government changed the needto index future accrual…it’s possiblesome schemes would go to the effortto alter scheme benefits, since it is somuch easier to hedge a level benefitthan an indexed one.”It seems probable though that thevast historical bulk of the definedbenefit pension market will remainindexed whatever happens, and willremain vastly more significant than anyindexation-free DB pension pool for avery long time.Despite the DWP’s hopes, as Coopersays, “Getting rid of the indexationon DB wouldn’t be enough of anincentive for employers to re-open DBpension schemes.”As for the possibility of companiesre-embracing DB pensions if theybecome detached from inflation,LCP’s Scott said that “On its ownit won’t make companies changetheir decisions about DB, and atthe moment [the story is based on]Pensions Minister Steve Webb floatingan idea and so I doubt it is of greatsignificance at the moment.”As for the inflation market, oneseasoned trader said that in LPIoptions, any link between a decisionon future indexation would “only havea very, very tenuous” impact on hismarket. “”There have been a numberof changes in the past. The cutfrom [0, 5] to [0, 2.5] for example,and they have made basically nodifference because of the size of theaccrued benefits.”Because of the accrued benefits,the trader said, “both RPI and LPIare unbalanced, and that isn’t goingto change for a while yet.” In themeantime, “every two months thereis a speculative newspaper storyabout indexation, I wouldn’t take ittoo seriously.”07 Q3 – Q4 2011

People Moves...New company Candidate Role Location Old CompanyAberdeen Asset Managment has hired Andrew McCaffrey as Head of Inst Hedge Funds London from Bluecrest Capital ManagementBank of America Merrill Lynch has hired David Grad as FX Strategist USA from Deutsche BankBank of America Merrill Lynch has hired Brian Schlosser as FX Trader USA from CitigroupBank of America Merrill Lynch has hired Feng Chang as Credit Trader London from Credit SuisseBank of America Merrill Lynch has hired Mark Capleton as Global Head of InflationStrategyLondon from Societe GeneraleBank of America Merrill Lynch has hired Shitij Sanghi as Rates Trader London from Nomura InternationalBank of America Merrill Lynch has hired John Chase as HD Corporate DerivativeSalesBank of America Merrill Lynch has hired David Moore as Head Structured ProductsTradingLondon from BNP ParibasUSA from Morgan StanleyBank of America Merrill Lynch has hired Justin Mead as EM FX Trader London from RBSBank of Tokyo - MitsubishiUFJBank of Tokyo - MitsubishiUFJhas hired Matthieu Gloux as FX Sales London from Citigrouphas hired Moritz Knickrehm as FX Sales London from Morgan StanleyBank Pictet & Cie Asia Ltd has hired Stefano Lupi as Head Markets Hong Kong from Santander GBMBarclays Capital has hired Juan Corbella as FX Sales London from Credit SuisseBarclays Capital has hired Nicholas Wright as HD Markets Japan from Credit SuisseBBVA has hired Stephen McEvoy as FX Sales London from HSBCBlacktree Investment has hired Shivraj Bassi as Partner London from Goldman SachsBloomberg has hired Fabrizio Ferrini as Application Specialist London from CommerzbankBNP Paribas has hired Adrian Boehler as Global Head FX InstitutionalSalesLondon from Barclays CapitalBNP Paribas has hired Don Law as FX Sales London from Goldman SachsBNP Paribas has hired Mital Shah as FX Trader London from Morgan StanleyBrevan Howard has hired Fash Golchin as Rates Trader Geneva from CitigroupCapula has hired Walid Daou as Rates Trader London from Barclays CapitalCIBC has hired Patrick Bennett as FX / Rates Strategist Hong Kong from Standard BankCIBC has hired Soo Tan as FX Trader Hong Kong from West LBCIBC has hired Pauric Hanna as FX Trader London from Royal Bank of ScotlandCitigroup has hired Nina Knuever as FX Sales London from JP MorganCitigroup has hired Aditya Bagree as Structuring Mumbai from Nomura InternationalCitigroup has hired Hubert Lanne as Rate Sales London from Morgan StanleyCitigroup has hired Renzo Arcoria as Fixed Income Sales Milan from Barclays CapitalCitigroup has hired Sidharth Khanna as Rates Trader London from JP MorganCitigroup has hired Matt Long as FX Sales USA from UBSCitigroup has hired Gagan Singh as FX Trader London from Goldman SachsCommerzbank has hired Marc Viswanatha as Rates Trader London from LBBWCommerzbank has hired Eduardo Souza as Fixed Income Sales London from RBC Dexia08 Q3 – Q4 2011

People Moves...New company Candidate Role Location Old CompanyCommerzbank has hired Nick Crawford as Global Head FX Trading London from UnicreditCredit Agricole CIB has hired Darren Johnson as FX Options Trader USA from HSBCCredit Agricole CIB has hired James Prichard as Rates Trader London from West LBCredit Agricole CIB has hired Brendan Shanks as FX Sales London from ING BankCredit Agricole CIB has hired Loris Savasta as Rates Trader London from Royal Bank of ScotlandCredit Agricole CIB has hired Francois-Xavier Boutillier as Rates Trader London from Barclays CapitalCredit Suisse has hired John Estrada as Global Head FX eCommerce London from BNP ParibasCredit Suisse has hired Andrew McSweeney as Rates Trader USA from Nomura InternationalCredit Suisse has hired Gang Hu as Global Head Inflation Trading London from PIMCOCredit Suisse has hired Khorrom Hussain as FX Sales London from BloombergCredit Suisse has hired Giovanni Amanti as Fx Structuring Singapore from Barclays CapitalCredit Suisse has hired Hemant Grover as FX Sales London from HSBCCredit Suisse has hired Mathias Berenger as Rates Trader London from Barclays CapitalCredit Suisse has hired David Tait as Global Head FX Trading London from UBSCredit Suisse has hired Benedict Stoddart as Rates Trader London from CitigroupDeka Investment has hired Dirk De Boeck as Rates Trader London from MizuhoDeutsche Bank has hired Jaiman Lee as Rate Sales USA from HSBCDeutsche Bank has hired Yuchen Chan as Rate Sales London from Rabo BankGetco Trading has hired Isaac Chang as Global Head Fixed Income USA from Goldman SachsGoldman Sachs has hired Jonny Edelman as FX Sales London from JP MorganGoldman Sachs has hired Piers Cox as Rates Trader London from Barclays CapitalHSBC has hired Edward Scudamore as FX Trader Hong Kong from RBCHSBC has hired David Thursfield as FX Trader TBC London from UBSHSBC has hired Paul Thirlwall as Global Head FX ExoticsTradingLondon from Barclays CapitalHSBC has hired Marwan Khouadja as Rates Trader Paris from Standard CharteredHSBC has hired Yorke O’Leary as FX Sales London from Goldman SachsHSBC has hired Alexandros Scountjos as FX Sales London from Barclays CapitalHSBC has hired Martin Persson as FX Sales London from Barclays CapitalHSBC has hired Udit Kapoor as Rate Sales London from Royal Bank of ScotlandHSBC has hired Ruth De Wulf as FX Sales London from Royal Bank of ScotlandHSBC has hired Nicolas Schilling as Rates Trader Paris from Credit Agricole CIBHSBC has hired Adelaide Rosa as FX Sales London from Bank of America Merrill LynchHSBC has hired Daragh Maher as FX Strategist London from Credit Agricole CIBING has hired Robert Dougall as Consultant London from RBC Capital MarketsInvestec has hired Kiran Russell as FX Sales London from Barclays Capital09 Q3 – Q4 2011

People Moves...New company Candidate Role Location Old CompanyInvestec has hired Malcolm Long as Fixed Income Sales London from Anglo Irish BankInvestec has hired Ramon Varela as Rate Sales London from Execution NobleJefferies International has hired Guy Cornelius as Credit Sales London from Nomura InternationalJefferies International has hired Mark Wegbrans as Fixed Income Sales London from Aladdin CapitalJefferies International has hired Marcin Rzechowski as Fixed Income Sales London from Rabo BankJefferies International has hired Michael Koegler as Fixed Income Sales USA from UBSJP Morgan has hired Eliza Veldman as Rates Trader London from Royal Bank of ScotlandJP Morgan has hired Alex Lu as Rates Trader London from Barclays CapitalJP Morgan has hired Hubert Schoeberl as Rate Sales Germany from Royal Bank of ScotlandJP Morgan has hired Libor Straka as Rates Trader London from Barclays CapitalJP Morgan is hiring Richard Pearce as Rate Sales London from Bank of America Merrill LynchLLoyds Banking has hired Daniel Morton as FX Sales London from ING BankLLoyds Banking has hired Jennifer Hau as FX Strategist London from Nomura InternationalLLoyds Banking has hired Keith Underwood as HD FX Trading USA from Standard CharteredLLoyds Banking has hired Asif Khattak as FX Sales London from Barclays CapitalLLoyds Banking has hired Graham Harris as FX Sales London from UBSLLoyds Banking has hired Nick Fletcher as Rates Structurer London from Royal Bank of ScotlandLLoyds Banking has hired Timothy Townend as Rate Sales London from RBSLLoyds Banking has hired Malcolm Rarity as FX Trader London from Manden InvestmentsLLoyds Banking has hired Jamie Warman as Rate Sales London from JP MorganLLoyds Banking has hired Darren Coote as FX Trading London from UBSLLoyds Banking has hired Ingrid Hammond as Rate Sales London from BarcapLLoyds Banking has hired Paul Jones as Rates Trader London from UBSMediobanca has hired Alexandre Winkler as Rate Sales London from Kepler Capital MarketsMitsubishi UFJ Securities has hired Michael Sorensen as Rate Sales London from NordeaMizuho International has hired David Grundy as Rate Sales London from Santander GBMMizuho International has hired Adrian Kreuser as Rate Sales London from Bank of America Merril LynchMorgan Stanley has hired Stathis Metsovitis as Rates Trader USA from Credit SuisseMorgan Stanley has hired Adam White as FX Structurer USA from Barclays CapitalMorgan Stanley has hired Nadine Heemann as Fixed Income Sales London from Nomura InternationalNational Australia Bank has hired Paul Glen as FX Sales London from Royal Bank of ScotlandNomura International has hired Nigel Khakoo as Global Head FX OptionsTradingLondon from CitigroupNomura International has hired Richard Boardman as Rate Sales London from Royal Bank of ScotlandNomura International has hired Carl Radford as Rates Trader London from HSBCNomura International has hired Philipp De Cassan as Rates Trader London from Morgan Stanley10 Q3 – Q4 2011

People Moves...New company Candidate Role Location Old CompanyNomura International has hired Benoit Pinguet as Rates Trader London from Morgan StanleyNomura International has hired David Mendez-vives as Rates Strategist London from Societe GeneraleNomura International has hired John Gorman as Rates Trader Singapore from Royal Bank of ScotlandNomura International has hired Manish Varma as Global Head of Structuring London from Deutsche BankNomura International has hired Andy Chaytor as Rates Strategist London from Royal Bank of ScotlandNordea Bank has hired Erik Hultman as Rates Trader London from Svenska HandelsbankenNordea Bank has hired Jani Lindholm as Rates Sales Finland from Mitsubishi UFJ SecuritiesNordea Bank has hired Martin Karrin as Rates Sales Sweden from Svenska HandelsbankenNykredit Bank has hired Olivia Fleischmann as Rates Sales London from CitigroupPioneer Investment Managementhas hired Paresh Upadhyaya as FX Trader USA from Bank of America Merrill LynchRBC Capital Markets has hired Andy Haig as Rates Trader London from Nomura InternationalRenaissance Capital has hired Peter Timpson as Head of Emerging MarketCreditUSA from Jefferies InternationalReyl & Cie has hired Gilles Pradere as Senior Fund Manager London from Credit Agricole CIBRoyal Bank of Scotland has hired Jon Underwood as FX Trader USARoyal Bank of Scotland has hired Brian Kim as FX Strategist USA from UBSRoyal Bank of Scotland has hired Mark Webster as FX Sales London from Bank of America Merrill LynchRoyal Bank of Scotland has hired Thomas Vakker as Rate Sales London from Credit SuisseRoyal Bank of Scotland has hired Ramzi Assi as Credit Trader London from Barclays CapitalRoyal Bank of Scotland has hired Gary Hawkins as Head EM Sales & Trading London from Societe GeneraleRoyal Bank of Scotland has hired Shahram Alavian as Credit Quant London from Barclays CapitalRoyal Bank of Scotland has hired Graham Wintersgill as FX Sales London from Bank of America Merrill LynchRoyal Bank of Scotland has hired Patrick Weychardt as Rate Sales Germany from West LBRoyal Bank of Scotland has hired Ged Corbett as FX Trader London from Nomura InternationalRoyal Bank of Scotland has hired Henry Drysdale as FX Trader London from Goldman SachsRoyal Bank of Scotland has hired James Pearson as Head of FX Spot Trading London from Nomura InternationalSantander GBM has hired Jonathan Tse as FX sales London from ANZSantander GBM has hired Marco Bressan as Credit Sales London from Rabo BankSantander GBM has hired Igor Smirnov as European Head of QuantitativeResearchLondon from BNP ParibasSantander GBM has hired Christhi Theiss as Rate Sales Madrid from Royal Bank of ScotlandSociete Generale has hired Rob Philbin as Fx Trader London from Barclays CapitalSociete Generale has hired Mark Williams as Rate Sales London from Morgan StanleyStandard Chartered has hired Tim Bird as FX Trader London from BNP ParibasSwedbank has hired Martin Soderlund as FX Sales London from Bank of America Merrill LynchTD Securities has hired Ryan Pacifico as FX Trader USA from Standard Chartered BankUBS has hired Shahab Jalinoos as FX Strategist London from Artradis Fund Management11 Q3 – Q4 2011

People Moves...New company Candidate Role Location Old CompanyUBS has hired Anna Sourina as FX Sales London from Barclays CapitalUBS has hired Chris French as FX Structurer London from Barclays CapitalUBS has hired Victoria Robinson as FX Sales London from Royal Bank of ScotlandUBS has hired Jeremy Young as Credit Trader London from CitigroupUBS has hired Nicolo Magni as Rate Sales Hong Kong from Morgan StanleyUBS has hired Jonny Newman as Fixed Income sales London from Barclays CapitalUBS has hired Chung Wong as Rates Trader London from Morgan StanleyUBS has hired Alex Maillard as Global Head Electronic FXSalesLondon from Deutsche BankUBS has hired Regis Bourget as FX Sales Paris from Societe GeneraleUBS has hired Gareth Walters as Rates Trader London last at RBC Capital MarketsUniCredit has hired Asif Razzaq as FX Trader London from Standard Chartered BankUniCredit has hired Bernd Broker as FX Market Consultant London from Nomura InternationalUniCredit has hired Nick Gentle as FX Trader London from Royal Bank of ScotlandWells Fargo has hired Doris Chauvancy as FX Sales USA from BNP Paribas12 Q3 – Q4 2011

Leavers...Name Role Bank LocationSimon Law Treasury Sales has left Anglo Irish Bank plc in LondonGaelle Cohen FX Trader has left ANZ in LondonJoshua White FX Trader has left ANZ in SingaporeAndy Graham Rates Trader has left Bank of America Merril Lynch in LondonNeh Thaker Global Head Structured Products has left Bank of America Merril Lynch in LondonStylianos Contogoulas Rates Trader has left Bank of America Merril Lynch in LondonDirich Kolbeck Credit Sales has left Bank of America Merrill Lynch in GermanyHarald Braunstein Rate Sales has left Bank of America Merrill Lynch in FrankfurtWarwick Palmer FX Trader has left Bank of America Merrill Lynch in LondonIrina Marty Fixed Income Sales has left Barclays Capital in LondonAmol Navandar FX Trader has left Barclays Capital in SingaporeJohn Erratt FX Trader has left Barclays Capital in LondonMatt Gardiner FX Trader has left Barclays Capital in LondonPer-Fredrik Emanuelsson Rates Trader has left Barclays Capital in LondonUgur Gungor Rates Trader has left Barclays Capital in LondonRichard Meo FX Sales has left Barclays Capital in LondonTim Coope FX Sakes has left Barclays Capital in LondonTim Hooijdonk Rate Sales has left Barclays Capital in LondonVijay Modhvadia Rates Trader has left Barclays Capital in LondonCormac O’Connell FX Trader has left BBVA in MadridFrancois Bremme Rates Trader has left BBVA in MadridJan Roose FX Structuring has left BNP in BelgiumLincoln Sheppard FX Sales has left BNP in USAJerry Rafalimanana FX Structuring has left BNP Paribas in ParisMartin Cross Rates Trader has left BNP Paribas in LondonNicola Spanger Rate Sales has left BNP Paribas in FrankfurtPeter Urbanek FX Sales has left BNP Paribas in LondonJonathan Meenaghan Portfolio Manager has left Capula Investment Services in LondonAntonio Cavarero Rates Trader has left Citigroup in LondonErwin Parviz Rates Structurer has left Citigroup in LondonJie Dong Rate Sales has left Citigroup in LondonLaura Coady Rate Sales has left Citigroup in LondonSidney Whitehead Rates Trader has left Citigroup in New YorkAdam Betteridge FX Structurer has left Credit Suisse in SingaporeAlan Thomas FX Sales has left Credit Suisse in SingaporeAngelia Tan FX Sales has left Credit Suisse in London13 Q3 – Q4 2011

Leavers...Name Role Bank LocationAttila Jelinko Fixed Income Sales has left Credit Suisse in LondonCarl Hollitscher Rate Sales has left Credit Suisse in LondonChawki Chouaibi Credit Trader has left Credit Suisse in LondonDouglas Huggins Rates Strategist has left Credit Suisse in LondonFrank Schaller Fixed Income Sales has left Credit Suisse in FrankfurtGerard Fox Rate Sales has left Credit Suisse in LondonGuillaume Chemin Rate Sales has left Credit Suisse in LondonGuillaume Huteau Rates Trader has left Credit Suisse in LondonJulien Eisenberg Rates Trader has left Credit Suisse in LondonMark Smyth Rates Trader has left Credit Suisse in LondonMartin Wiedmannn FX Sales has left Credit Suisse in SwitzerlandMassimo Amati Rates Trader has left Credit Suisse in LondonNick Barker Hd FX eCommerce has left Credit Suisse in LondonPaul Acutt Rates Trader has left Credit Suisse in LondonPaul Gribelyuk Rates Trader has left Credit Suisse in LondonPaul Jones Rates Trader has left Credit Suisse in LondonRoland Jacubetz Fixed Income Sales has left Credit Suisse in LondonStanislas de Caumont Rates Trader has left Credit Suisse in LondonStuart Wilson Rates Trader has left Credit Suisse in LondonBatur Asmazoglu Rates Trader has left Deutsche Bank in LondonMichel Rybkin Fixed Income Sales has left Deutsche Bank in LondonCalixte De Verdelon Rates Trader has left Goldman Sachs in LondonKoen The Rate Sales has left Goldman Sachs in LondonNick Hinde Rates Trader has left Goldman Sachs in LondonAde Ajayi Rates Trader has left HSBC in LondonBilly Ball Rates Trader has left HSBC in Hong KongChris Bolton FX Sales has left HSBC in LondonDaniel Moon Rate Sales has left HSBC in LondonDean Heiden FX Sales has left HSBC in LondonGeraud Delteil Rates Trader has left HSBC in ParisKevin Haskell Rate Sales has left HSBC in LondonKevin O’Keefe Rates Trader has left HSBC in USALily Han FX Sales has left HSBC in USAPaul Varjan Rates Trader has left HSBC in USARichard Easton Rate Sales has left HSBC in LondonRob Babich FX Trader has left HSBC in USA14 Q3 – Q4 2011

Leavers...Name Role Bank LocationRobert Matelwich Rates Trader has left HSBC in New YorkSimone Andre FX Sales has left HSBC in LondonTed Mermel FX Sales has left HSBC in USAVictor Hamoush FX Sales has left ING Bank in LondonHeinz Peter Stohl Head eMTN Sales has left Jefferies International in LondonFranck Kornmann Rates Trader has left Lloyds Banking in LondonHetal Patel FX Trader has left Lloyds Banking in LondonJonathan Sebag Rates Trader has left Lloyds Banking in LondonKelvin Jouhar FX Trader has left Lloyds Banking in LondonLara Ette Rates Trader has left Lloyds Banking in LondonNicolas Joliot Rates Trader has left Lloyds Banking in LondonVincent Gesser Head Structured Rates has left Lloyds Banking in LondonBright Agbeko Rate Sales has left Mitsubishi UFJ Securities in LondonDavid Fotheringham Rate Sales has left Mitsubishi UFJ Securities in LondonFredrik Ashage Rate Sales has left Mitsubishi UFJ Securities in LondonYannis Theodarakakos Rates Trader has left Morgan Stanley in LondonBenjamin Moulle Rates Trader has left Nomura International in LondonElodie Bouchenah FX Sales has left Nomura International in LondonJakub Berczak Rate Sales has left Nomura International in LondonJeevan Jyothyprakash Rates Strategist has left Nomura International in LondonJordan Rochester FX Strategist has left Nomura International in LondonLaurent Bilke Rates Strategist has left Nomura International in LondonMatthew Edwards Rates Sales has left Nomura International in LondonRichard Gladwin Global Head Foreign Exchange has left Nomura International in LondonSami Amara FX Trader has left Nomura International in LondonVuk Kalezic FX Sales has left Nomura International in LondonAnn Irene Larsen Rates Sales has left Nordea Bank inChristina Fredriksson Rate Sales has left Nordea Bank inHenrik Anderson Fixed Income Sales has left Nordea Bank in LondonJohn Pramgard Fixed Income Sales has left Nordea Bank in LondonPolle Brandt Fixed Income Sales has left Nordea Bank inTimo Melentjeff Fixed Income Sales has left Nordea Bank in FinlandJeremy Wilson Rates Trader has left RBC Capital Markets in LondonAlaistair Sharp Rates Trader has left Royal Bank of Scotland in LondonFrank Olgers Rate Sales has left Royal Bank of Scotland in LondonGerman Kucerov Fixed Income Trader has left Royal Bank of Scotland in London15 Q3 – Q4 2011

Leavers...Name Role Bank LocationKenny Nicoll Rate Sales has left Royal Bank of Scotland in LondonMatthew Holmes Rate Sales has left Royal Bank of Scotland in LondonPaolo Gilardi Rate Sales has left Royal Bank of Scotland in LondonRichard Skelton FX Structuring has left Royal Bank of Scotland in LondonRobert Coleman Rates Trader has left Royal Bank of Scotland in LondonRubin Rajendram Rates Trader has left Royal Bank of Scotland in LondonTobias Reuber Rates Trader has left Royal Bank of Scotland in LondonTommaso Pagani Rate Sales has left Royal Bank of Scotland in LondonJose Gonzalez Rates Trader has left Scotia Capital in LondonMatt Varughese Rates Trader has left Scotia Capital in LondonDan O’Sullivan FX Trader has left Societe Generale in USAKaterina Mitzeva Fixed Income Sales has left Societe Generale in LondonSophia Wang Fixed Income Sales has left Standard Chartered Bank in LondonGael Jacquot Rates Trader has left State Street in LondonRenato Giust Rates Trader has left State Street in LondonZachary Barton Rates Trader has left State Street in LondonJon Farrin Rates Trader has left TD Securities in USAAlastair Blyth Rates Trader has left UBS in LondonDariush Mirfendereski Rates Trader has left UBS in LondonDuncan Richford Credit Trader has left UBS in LondonMark Longtin Rates Trader has left UBS in LondonSteve Beverley Rate Sales has left UBS in LondonTarek Selim Fixed Income Sales has left UBS in FrankfurtThierry Gruslin Rates Trader has left UBS in LondonPeter Brandt Fixed Income Sales has left Unicredit in LondonRajiv Sesodia Rates Quantitative Research has left UniCredit in LondonPatrick Molloy Rate Sales has left Westpac Banking Corporation in LondonScott Cousins FX Trader has left Westpac Banking Corporation in LondonTony Brown FX Sales has left Westpac Banking Corporation in London17 Q3 – Q4 2011

Nicholas Scott InternationalNICHOLAS SCOTT INTERNATIONALEstablished in 2004, Nicholas Scott is a leading search &selection firm in the Legal and Global Financial Markets.The company has 2 offices with the Global Financial Marketspractice based in Cirencester, Gloucestershire and the LegalPractice based in the Broadgate Tower, City of London.GLOBAL FINANCIAL MARKETSOur Financial Markets practice works with the buy side (BankingCapital Markets) and sell side (Fund Management).CAPITAL MARKETSThe Capital Markets team works with the leading InvestmentBanks in the following areas:Trading & Strategy PracticeThe trading & Strategy team covers roles in the Interest Rate,FX & Credit markets e.g. Options, Exotics, Vanilla Swaps,Government Bonds, Cross-Currency, ABS / MBS, Inflation,CVA, STIR, Repo, Forwards, Spot, CDO / CDS, CorporateBonds, High Yield & Algorithmic trading.Sales PracticeThe sales team covers roles in Interest Rate, FX & Creditmarkets covering the UK, Continental Europe (Benelux,Scandinavia, Italy, France, Iberia, Germany & Austria), Central& Eastern Europe to financial institutions and corporates. Theteam also has extensive experience in roles covering hedgefunds, LDI and Real Money clients.Structuring & Quantitative PracticeThe Structuring & Quantitative Practice covers roles in InterestRate, FX & Credit markets across pure structuring, derivativemodelling, quant development, model validation & quant trading,electronic trading, algo Trading & systematic Trading.FUND MANAGEMENT PRACTICEThe fund Management practice works with the leading HedgeFunds, Fund of Funds, Alternative Asset Managers andTraditional Asset Managers in the following areas:Portfolio Management roles:Arbitrage (Convertible, Fixed Income & Multi-Strategy), CTA(Discretionary, Systematic), Directional (Equity Diversified), EventDriven (Distressed Security, Merger-Arbitrage, Multi-Strategy),Fixed Income (Multi-Strategy), Fund of Funds, Long/Short,Macro (Currency/Diversified), Market Neutral (Discretionary,Statistical Arbitrage, Systematic), Multi-Strategy (Diversified).Analyst:Research Analyst roles across all strategy areas.Research & Quantitative Finance roles:Model Development & Validation, Quant Analyst & Trading.Structuring:Across all asset classes.Risk Management:Including Collateral Management & Valuation, Risk Analysis& Reporting.Sales & Investor Relations:Investor Development and Management.Contact Details:Tel Switch: 01285 88 20 10www.nicholas-scott.comEmail: info@nicholas-scott.com18 Q3 – Q4 2011

www.nicholas-scott.comNicholas Scott International LimitedNicholas Scott International Limitedbelieves that the information hereinwas obtained from reliable sources,but does not guarantee its accuracy.Cirencester11 Cirencester Office ParkTetbury Road, CirencesterGloucestershire GL7 6JJTelephone: +44 (0)1285 88 20 10Email: info@nicholas-scott.comLondonBroadgate tower20 Primrose StreetLondon EC2A 2EW