The Greece Crisis: A Game with No Winners

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The Greece Crisis: A Game with No Winners – Profit & Loss (free story)
Economists agree that although a Greek default and potential exit from the Eurozone will have less of an impact on FX markets than three years ago, it will still have significant implications.

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Wave of Contagion Expected After Dramatic Weekend Raises ‘Grexit’ Chances

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Wave of Contagion Expected After Dramatic Weekend Raises ‘Grexit’ Chances – Reuters
Global financial markets are braced for a wave of contagion from Greece on Monday, with expected heavy losses for southern European government bonds and regional stock markets as investors scramble to discount a possible “Grexit” that most had still assumed was unlikely as late as Friday afternoon.

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SFO to Interview FX Traders Under Caution

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SFO to Interview FX Traders Under Caution – Financal Times (subscription)
UK investigators are preparing to interview suspects under caution as part of their criminal inquiries into whether the foreign exchange market was rigged. Former traders, including Citigroup’s ex-European head of spot trading Rohan Ramchandani, who was a member of a chatroom known as the Cartel, will be questioned by the Serious Fraud Office within the next 12 weeks.
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UK Toughens Remuneration Rules

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UK Toughens Remuneration Rules – Profit & Loss (free story)
The UK’s Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA) have jointly released tougher rules on remuneration in financial services, including an extension of the period during which bonuses can be clawed back. “Today’s rules are part of a wider package that is being announced over the summer to embed an accountable culture in the City,” says Martin Wheatley, CEO of the FCA. “Our rules will now mean that senior managers face claw back of bonuses for up to 10 years, if misconduct comes to light.”

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Is the FX Industry Set for a Period of Consolidation?

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Is the FX Industry Set for a Period of Consolidation? – Profit & Loss (subscription)
With rumours swirling around about a number of multi-dealer platforms that could be up for sale, it may be that the FX industry is now set for a period of consolidation. A number of platforms launched in 2012 are nearing the end of their three-year funding plans and have reached a “sink or swim” moment. The regulatory landscape is beginning to change the market and therefore enticing new players into the industry and BATS Global Market’s acquisition of Hotspot has shaken things up in the platform space. All of which could cause a perfect storm that ends in consolidation. But which platforms could be up for sale and who are the potential buyers?
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Fines Aren’t Enough for Fair Markets: Minouche Shafik

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Fines Aren’t Enough for Fair Markets: Minouche Shafik – Wall Street Journal (subscription)
High-profile enforcement actions have resulted in very significant penalties for firms across a wide range of markets, amounting to more than $150 billion since 2009. These fines demonstrate that conduct that undermines the integrity of financial markets won’t be tolerated by regulators, and have no doubt had a deterrent effect. Fines have also focused the attention of corporate boards and shareholders on the seriousness of conduct issues within their firms. But fines alone aren’t enough.
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