Top Headlines

CCP Risk Debate Driven by Clearing Member Profits – Profit & Loss (free story)
Discussion over central counterparty clearing (CCP) risk has steadily intensified over the past year, but market sources suggest that the diminishing profitability of clearing members is the real reason why this subject is getting so much attention now.

Singapore Dollar Jumps After Central Bank Unexpectedly Keeps Policy Steady – Reuters
The Singapore dollar rallied on Tuesday, leading gains in Asian currencies, after the central bank surprised markets by holding monetary policy steady and expressed confidence in the trade-reliant economy’s growth outlook.

Euro Weakness Broader Than Drop Versus Dollar Amid Greek Angst – Bloomberg
Negotiations over the future of Greece’s financing are rankling foreign exchange traders, with evidence of their concern showing up in multiple currency pairs. The euro slipped for a seventh day against the dollar on Tuesday and tumbled to its weakest level against the yen since June 2013.

Dollar Drops Against Yen After PM Abe Advisor Says ¥120 Too Weak – Market Watch
The dollar was lower against the yen in Asian trade Tuesday, with comments by an adviser to Prime Minister Shinzo Abe keeping a lid on the greenback’s upward momentum.

Post-Election Standoff May Still Wrong-Foot Sterling Investors – Reuters
For British businesses concerned that May’s election could trigger big swings in sterling, the cost of protection has surged in the past month – and any protracted talks on forming a coalition government could push it higher still. Sterling hit a five-year low against the dollar this week while the price of currency options expiring immediately after the May 7 vote hit multi-year highs.

Russian Ruble Bounces Back to Become the World’s Best-Performing Currency – Russia Beyond The Headlines
Between early February and early April 2015, the Russian ruble gained 22.3% against key benchmarks, making it the world’s best-performing currency. Experts are not yet convinced that this impressive strengthening of the ruble will become a long-term trend.

Hedge Funds’ Bets on Strengthening Dollar Pay Off – Financial Times (subscription)
Hedge funds have enjoyed their best quarter relative to US equities in four years as big bets on the rise in the US dollar paid off for some of the world’s best known managers, helping the industry break years of mediocre returns.

Money Market Abandons Logic in Denmark After Currency Sinks – Bloomberg
The Danish krone is close to its weakest in 14 years and money market traders are predicting the central bank will need to raise rates in 2015 to defend its euro peg.

PBOC’s Reserves Decline by Record on Intervention, Euro’s Slide – Bloomberg
China’s foreign exchange reserves slid the most on record in the last three months, fuelling speculation the central bank sold holdings to support the yuan as money flowed out of the world’s second-largest economy.



Regulatory News

New York Regulator Considering New Cyber Security Rules – Profit & Loss (free story)
The New York State Department of Financial Services (NYSDFS) says that it is considering implementing new cyber security requirements for banks.

Watchdogs Set to Attack as Trade Reporting Deadline Looms – The Trade
Firms are scrambling to improve the accuracy and cost efficiency of trade reporting for buy-side firms by offering up new solutions. The reporting of derivatives trades has become a mandatory requirement across Europe under the European Market Infrastructure Regulation, and the first year of the new rules has been wrought with challenges.

US Commodity Futures Trading Commission and Australian Prudential Regulation Authority Sign Memorandum of Understanding to Enhance Supervision of Cross-Border Regulated Firms (press release)
The US Commodity Futures Trading Commission chairman Tim Massad and Australian Prudential Regulation Authority chairman Wayne Byres have signed a Memorandum of Understanding regarding cooperation and the exchange of information in the supervision and oversight of regulated firms that operate on a cross-border basis in the US and in Australia.



Company News

RBC Completes First RMB Payment Via Canada’s New Trading Hub – Profit & Loss (free story)
The Royal Bank of Canada has completed the first cross-border bank-to-bank renminbi payment on Canada’s new RMB trading hub, through the hub’s designated clearing bank, the Industrial & Commercial Bank of China (Canada).

Citi Seeking to Sell Retail FX Arm: Source – Reuters
Citi is looking for a buyer for its retail forex brokerage CitiFX Pro as part of efforts to streamline the banking world’s biggest currency trading operation, a source familiar with the situation told Reuters on Tuesday.



Market Savvy  

FX Forecasts and Valuations – Slower But Don’t Doubt the Trend
Deutsche Bank
Time is still on the USD’s side.  Recent softer US data plays to a period of consolidation on large USD gains over the last nine months, but does not signal a change in the bigger trend.  In the last two big USD bull cycles, in the early 1980s and late 1990s, the USD peak was only achieved after the cycle top in US rates, so it seems decidedly premature to think that data that may temporarily delay the start to Fed tightening also heralds the end of the USD bull run.



Press Releases

Monetary Policy Divergence Driving Global Market Volatility, Says Manulife Asset Management Report
Monetary policy divergence is driving volatility in local asset values in markets around the world and investors should prepare for this volatility to continue, according to a report just released by Manulife Asset Management.

Thomson Reuters Market Tracker Solution Goes Live at the Central Bank of Nigeria
Thomson Reuters has launched its foreign exchange trade reporting solution for the Central Bank of Nigeria and FMDQ OTC PLC, a securities exchange and self-regulatory organisation registered by the Securities and Exchange Commission, Nigeria.

Cinnober and Ancoa Agree Strategic Collaboration to Deliver Market Surveillance Capabilities to Banks
Cinnober, a provider of financial technology for market operators, clearing houses, banks and brokers, and Ancoa, providers of contextual surveillance and insightful analytics for exchanges, regulators, buy and sell-side firms, have entered into a strategic collaboration to provide market surveillance to help financial institutions meet their regulatory and compliance obligations.



Industry Events