March marked the start of dividend season in Europe, the most active time of year for equity derivative desks, when a broker can expect to work 16-hour shifts several times a week and watch holiday plans sail out of the window.

Delta one equity derivative desks at banks aim to offer investors the same return they would have garnered from an underlying equity product, without the need to own it. Synthetic exposure to returns from a stock or basket of stocks, achieved through a contract such as a total return swap, are attractive to fund managers, since they mitigate tax payable on earned dividend income, which has to be paid by the stock's holders.