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Equity derivatives losses hit banks

Sudden rise in volatility and correlation, along with October turmoil, exact toll on trading

Some of the biggest participants in the equity derivatives business made hundreds of millions of euros in losses on the back of a sudden rise in volatility and correlation last month, according to analysts covering the banks and senior figures in the equity derivatives markets.

BNP Paribas, Deutsche Bank and Natixis each made as much as €300m ($382m) to €500m in trading losses in October, the analysts said. All the banks declined to comment.

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