Day 3 CBOE RMC Europe Recap

The final day of the 2014 edition of CBOE RMC Europe began with an excellent keynote presentation from Pete Clarke the Global Head of Equity Derivatives Strategy at UBS. He spoke on Global Equity Derivatives Trading Themes – Dislocations and Opportunities for a Diverse Investor Base. He discussed several trading themes but did end with a warning that there are still nickels to be picked up but investors and traders should be cautious as the steamroller seems to be getting bigger.

Yoshiki Obayshi, Founder of Applied Academics and Angel Serrat, Partner and Chief Strategist, Capula Investment Management teamed up for a widely anticipated presentation on Friday morning where they discussed Cross Asset Volatility Strategies for Tail Hedging and Alpha Generation. The day before it was announced that CBOE would commence trading on VXTYN futures in November and this area was touched on during their presentation along with other relative trading strategies and how to go about implementing those ideas.

Pin Chung from R+V International Business Services Limited and Rachid Lassoued from Bloomberg were co-presenters in a session that was found useful to insurance companies and other variable annuity market participants. In Management of Asian and Cliquet Option Exposures for Insurance Companies they covered the design of equity-linked insurance products and how to handle risk through hedging with both listed and OTC options.

One of the final presentations of this year’s conference covered Structured Products and Their Impact on Markets: What You Need to Know. Equity Derivatives Specialist Delphine Leblond-Limpalaer from Societe Generale and Peter Murphy Founder of PM Murphy Limited discussed the structured product market, the different market participants, and their thoughts on how this market is evolving.

I personally found the last presentation of the conference one of the most educational. Danile Danon from Assenagon Asset Management and Tim Edwards from S&P Dow Jones Indexes offered up a presentation on Correlation and Dispersion, What They Mean and How to Trade Them. During their presentation they clearly showed the impact of dispersion on market participant performance along with discussing examples of how trading strategies are implemented.

This was my fourth RMC since joined the Chicago Board Options Exchange. I know I am biased, working at CBOE and all, but I continue to feel lucky that part of my job allows me to be exposed to so many quality market practitioners two times a year. I am already looking forward to March 4 – 6 when the US version of RMC returns to Carlsbad, CA.