Employment derivatives: Difference between revisions

The scandal blew up when it emerged HR departments were being incentivised to “pi-hack” their derivatives portfolios by arbitrarily placing employees on performance management, covertly arranging other firms to bid them away or just peremptorily laying them off, leaving redundant staff holding twenty-five year, deep [[out-of-the-money]] employment rate swaps but no actual job to hedge with it. Being the sort of people who would sling their redundancy payoffs into Dogecoin these people were doubly exposed should [[crypto]] go [[Seins en l’air|''seins en l’air'']].

Though self-referencing employment derivatives are now prohibited in many jurisdictions, no-one was brought to book for poor selling programmes. Nevertheless, interests in ERS hedging began to wane shortly afterward as other incidents came to light — some faintly comical such as when, during the [[COVID-19]] pandemic, a human resources trader at Wickliffe Hampton inadvertently opted for physical settlement by ticking the wrong box on a portfolio swap [[Confirmation - ISDA Provision|confirmation]] and had to delivered his entire HR department into an chain of patisseries that had just gone insolvent. At first, the team of thirty short-order pastry chefs that were delivered to Wickliffe Hampton’s London headquarters were struggled to orient themselves, but staff morale rapidly improved, and staff pronounced the morning teas to be “excellent”.