Weekly Bulletin: Dec 8-12

This week ended with a bang as the VIX touched 21 for the first time since October. In the OTC market, both new entrants and systematic sellers were busy selling volatility. Significant call volume was also seen in the listed market Friday. EQD also this week takes a peek at Standard Life’s new Enhanced Diversified Global Emerging Markets Strategy, while UBS is also out shopping OTC swaps on a VIX long/short index. We have the news that the OCC is again taking a stab at margin issues around listed variance futures two years after the product launched. In Asia, investors are showing interest in fund-linked structured products, another sign of increased demand in innovative structures in the region, while in Europe the decline in the European equity market on Wednesday afternoon combined with the current level of volatility has opened the opportunity to go long the Eurostoxx 50 and short the iTraxx Main. New listings of leverage structured products in Europe is also increasing, according to the latest figures from the European Structured Investment Products Association. Look out for the EQDerivatives Weekly Flow Report on Saturday. The report will be published at 10:00am EST covering the major flow trends in equity derivatives in Asia Pacific, Europe and North America.