--Rob McGlinchey
European lawmakers have proposed a ban on financial services employees being allowed to hedge their bonus payouts. The hedges popped up last season when deferred bonus payouts were being pushed by regulators and staffers. Employees have been using plain vanilla hedges such as options on the stock price of an employer to protect their bonus from losses should their firm suffer losses before the payout. The new proposal would ban such hedges, according to a European Parliament legislative document seen by Derivatives Week.
The ban, driven by a desire on the part ....