---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 02/02/2001 
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"RiskNews Update" <listadmin@riskwaters.com> on 02/02/2001 12:09:13 PM
To: List Member <vkamins@enron.com>
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Subject: - latest RiskNews Update - 02/02/2001


RiskNews Update - http://www.RiskNews.net

RiskNews Update - http://www.risknews.net/

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RiskNews Update - week ending 02/02/2001
http://www.RiskNews.net
News for derivatives and risk management professionals
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Dear Subscriber,

Welcome to RiskNews Update!

The Fed's second 50 basis point cut in interest rates in a month to stave
off a recession in the US - a move widely discounted in the marketplace -
was the subject of many headlines this week. While the cut is the largest
since the 1982 recession, and has raised eyebrows regarding the true state
of the US economy, there was also plenty of other important news.

ABN Amro unveiled plans to boost its risk management and derivatives
business by purchasing a large slice of ING Barings' North American
investment banking operations for $275 million. Competition in the US and
elsewhere will be fierce, however, with leading player Salomon Smith
Barney creating a new global interest rate and derivatives products group,
following an overhaul of its fixed-income and derivatives businesses.
There appears to be no long-term role for Citibank's Fred Chapey in the
new division. Meanwhile, Deutsche Bank's decision to axe about 2,600 staff
following a restructuring of its operations into two business groups, will
have a negligible impact on its derivatives business (see Headlines).

London-based broker Tullett & Tokyo Liberty was back in the news again for
alleged racial discrimination. Laurent Weinberger, a broker on the new
issues desk until last May, initiated a racial discrimination and unfair
dismissal case against his former employer this week. Previously the firm
had a run-in with client Citibank, when a Tullett employee allegedly made
racist comments to a Citi official (see People).

Christopher Jeffery
Editor, RiskNews

Tel: 44 (0)20 7484 9880
mailto:cjeffery@riskwaters.com

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OpRisk 2001 is the first conference to bring together leading experts to
discuss the revised Basel consultation paper in depth. Due to overwhelming
demand we've decided to extend the Operational Risk promotion deadline for
you. Click here to order your FREE copy (worth $70) of the February issue
of the Operational Risk newsletter http://www.risk.net/oprisk/freeissue.htm
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RiskNews Update - 02/02/01

Headlines/ Technology and Exchanges/ People/ Events

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Headlines - 02/02/2001
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2 February - Continuous Linked Settlement, the pan-industry initiative to
reduce FX settlement risk, is set to go live in October having passed a
recent internal review

1 February - Deutsche Bank's plan to axe around 2,600 staff following a
restructuring of its operations into two business groups - a move the bank
claims will lead to savings of e1.5 billion through to 2003 - will have a
negligible impact on its derivatives business

1 February - Britain's financial watchdog, the Financial Services
Authority (FSA), has given a warning that credit derivatives will face
higher capital charges than traditional bank guarantees under planned
reforms to the Basel Capital Accord

31 January - With US banks in the unusual position of being challenged for
dominance in the global forex business by firms such as Deutsche Bank,
Bank of America plans to implement new tactics that include getting closer
to its traditional US customers

30 January - ABN Amro's decision to buy a large slice of ING Barings'
North American investment banking operations for $275 million will result
in a major boost for its derivatives business, according to senior
officials at the bank

30 January - Greece's membership of the euro-zone and recent efforts by
its Central Bank to modify its bond issuance policy to match EuroMTS
listing criteria has resulted in three Greek government bonds being
offered on the EuroMTS trading system

29 January - Salomon Smith Barney has created a new global interest rate
and derivatives products group, following an overhaul of its fixed-income
and derivatives businesses, according to an SSB internal memo


To read more now, click http://www.risknews.net

*******************************************************************
You will find hundreds of FREE Risk magazine articles, website reviews and
back issue content from the last four years are available from Risk.net.
If it isn't available online, you can order back issues & articles too.
This link will take you through to the Special reports section of the
site: http://www.risk.net/supplements/supplements.html

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Technology and Exchanges - 02/02/2001
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31 January - New York-based B2B electronic market-place provider eSpeed
plans to expand and extend its licensing efforts in 2001, and has
appointed David Bullock to become global head of its private label division

31 January - The Sydney Futures Exchange (SFE) and the Hong Kong Exchange
and Clearing (HKEx) have formed a strategic alliance to develop a range of
new derivatives trading and clearing services for the Asia Pacific
exchange-traded and over-the-counter market-places

30 January - The Frankfurt-based European Energy Exchange (EEX) will
launch electricity futures trading on March 1. This is likely to make it
the first German power exchange to offer derivatives trading

29 January - Patsystems, the electronic trading systems provider, has
upgraded its service to include access to the London and German stock
exchanges in an attempt to boost its coverage of European equities and
derivatives

29 January - US software developer NovaPlex Technologies has launched a
new online FX trading system for spot, forwards and options foreign
exchange trading, called NovaPlex Trading Network (FX Edition)

29 January - The second largest US options exchange, American Stock
Exchange (Amex), has elected four members to its board of governors,
including Thomas Sheridan, managing director of global equity derivatives
at Salomon Smith Barney. Sheridan replaces Goldman Sachs' Leslie Tortora

To read more now, click http://www.risknews.net

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NEW! A new market demands a new magazine. Telecoms Capacity provides
unique coverage and essential information for the rapidly expanding
bandwidth, minutes, IP packets and wireless sectors. Click
http://www.TelecomsCapacity.com for your FREE copy of the launch issue.
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People - 02/02/2001
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2 February - The Nasdaq Stock Exchange has appointed Hardwick Simons to
take over the chief executive officer role previously held by Frank Zarb,
with immediate effect

2 February - The Singapore Exchange (SGX) has made two new hires to head
its derivatives clearing and securities trading divisions

1 February - Laurent Weinberger, a broker on the new issues desk at
London-based brokers Tullet & Tokyo Liberty until last May, this week
initiated a racial discrimination and unfair dismissal case against his
former employer

1 February - Bank of America has expanded its global derivatives group in
Europe, naming senior hires for its structured securities and quantitative
research teams

31 January - Commerzbank Securities has named seven new hires to join its
derivatives and fixed-income team in New York as part of an aggressive
drive into the North American market

31 January - Daniel Rappaport, chairman of the New York Mercantile
Exchange will not seek re-election for a fifth term, ending eight years
heading the derivatives exchange

31 January - Morgan Stanley Capital International has hired Michel
Serieyssol from Bear Stearns to become global head of its hedge fund index
business

To read more now, click http://www.risknews.net

*******************************************************************
The Risk Awards 2001 will be presented at  "Risk 2001 Europe" - Risk's 6th
annual European derivatives & risk management congress to be held in
Paris, April. Click here for the event details:
http://www.risk-conferences.com/risk2001euro

The Risk Awards 2001 are available from www.risk.net/risk2001

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Events - 02/02/2001
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Events

Last week to book ...

OPRISK 2001 New York
February 8 & 9 2001

The first conference to bring together leading experts to discuss the
revised Basle consultation paper in depth.

OpRisk provides the opportunity for all involved in operational and
operations risk to learn how those at the forefront of management and
measurement techniques have addressed the current industry challenges.
Experts from the world's leading financial institutions, leading academics
and solution providers will detail the approaches that can be utilised or
adapted within your operational risk management environment.

ONLY A FEW PLACES LEFT.

For further information or to reserve your place visit
http://www.risk-conferences.com/oprisk2001 or call +44 (0)20 7484 9898

Other conferences coming soon ...... http://www.risk-conferences.com

Dealing with Technology 2001, New York (Feb), click
http://www.waters-conferences.com/dealing.htm
Risk 2001 Europe - Paris 10 & 11 April 2001

Other training courses coming soon ...... http://www.risktraining.com

Practical applications of Advanced Stress Testing - for integrated risk
measurement and management - London 5 & 6 February 2001 / New York 12 & 13
February 2001

Advanced Credit Risk Measurement and Modelling Techniques for effective
portfolio credit risk management - New York 8 & 9 February 2001  / London
15 & 16 February 2001

===================================================================
All of Risk Waters Group online services can be accessed through
http://www.riskwaters.com


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