G-20 Seal Currency Peace Pact as China Sets Out Bubble Cleanup

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Top Headlines

G-20 Seals Currency Peace Pact as China Sets Out Bubble Cleanup – Bloomberg Global finance chiefs agreed to avoid getting drawn into currency battles after China set out plans to steer its economy onto a slower path of expansion.


Regional Swaps Booking Replacing Global Hubs – Risk Magazine (subscription) Given a free choice, banks would probably book all of their trades in a global hub. But growing supervisory concerns, plus shifting rules around swaps clearing and execution, bank resolution, capital and liquidity are producing a more fragmented – and possibly less efficient – model.

More Flexibility on FX Benchmarking Needed – Profit & Loss (subscription) Some asset management firms need to use a benchmark for their FX executions, but why can these firms not be allowed to show some common sense and flexibility?

The Rise of KVA: How 10 Banks are Pricing the Capital Crunch –Risk Magazine (subscription) As more banks start pricing capital costs – or KVA – into their derivatives trades, questions are multiplying.

 

 

Regulatory News

How to Catch a Spoofer – Bloomberg A federal judge in Chicago is expected to rule soon on a high-profile spoofing case.

 

 

Company News

Icap Invests in Regulatory Reporting Firm – Profit & Loss Icap has made a strategic investment in a company that provides software for regulatory reporting as financial firms come under increasing pressure to meet evolving reporting obligations

Currenex Changes Matching Rules – Profit & Loss Currenex has changed its matching rules on its platform to prioritise non-last look liquidity.

R5FX Attracting Investment? – Profit & Loss Nascent emerging markets trading platform R5FX is attracting interest from the banking industry as it seeks to conduct its next stage of funding ahead of a full launch.

X Markets Trading will be Synonymous with Quality, says CEO – FX Week (subscription) The flow-handling and technology company comes up with solutions to meet the risk-warehousing and technology needs of banks and non-bank market-makers that have traditionally shared an uneasy relationship.

 

Market Savvy  

Dollar Falls on US Unemployment Data – Wall Street Journal (subscription) The dollar fell against the euro and yen Friday, after U.S. employment data failed to convince investors that the economy was strong enough for the Federal Reserve to raise rates this month.

Deutsche See Fed Hiking Rates in Sept; Global Growth Fine – MoneyControl Peter Hooper of Deutsche Bank Securities says the Fed hiking rates will be taken as recognition that the US market is doing well.

China’s Foreign Exchange Reserves Fall in August on Yuan Support – Bloomberg China’s foreign exchange reserves fell by a record last month as the central bank sold dollars to support the currency after the biggest devaluation in two decades spurred bets on continued weakness.

CFTC Data: Divergence Between USD and G7 Currencies – FX Street Khoon Goh, Research Analyst at ANZ Research notes that, according to the latest CFTC positioning data for the week ending 1st Sept 2015, there is a divergence between USD positioning against individual G7 currencies.

Lira Weakens to Record as Stocks Retreat After Deadly Attack – Bloomberg The lira weakened to an all-time low and stocks fell as President Recep Tayyip Erdogan vowed to escalate the government’s campaign against Kurdish separatists after a roadside bomb killed Turkish soldiers.

 

 

Press Releases

BIS Board Elects Jens Weidmann as New Chairman. The Board of Directors of the Bank for International Settlements (BIS) yesterday elected as its new Chairman, Jens Weidmann, President of the Deutsche Bundesbank. His term is for a period of three years, commencing on 1 November 2015.

Fenics Announces Release of Fenics Dealing Engine Fenics, a provider of FX options software and workflow solutions, has released Fenics Professional 12.4, including Fenics Dealing Engine, delivering automation of client-specific price generation, distribution and execution.

 

 

Industry Events