Top Headlines

Asset Managers Appeal for End to FX “Last Look” Practice – Reuters
Banks should not be allowed a last chance to reject deals on foreign exchange platforms, the main UK body representing UK asset managers said on Tuesday.

FXPA Elections for First Permanent Board Set for Feb 10
The Foreign Exchange Professionals Association (FXPA) will hold elections for its first permanent Board of Directors and Officers on Feb 10. FXPA, which launched Sept 25, 2014, now has 18 members representing the diversity of participants in the institutional FX market. To find out how you can support the FX industry through education, research and advocacy, visit our website at www.fxpa.org, become an institutional member, and sign up for our newsletter, FXPA globalFXsource.

EBS Currency Trading Volumes Soar in Volatile January – Reuters
Foreign exchange spot volumes on the EBS platform rose 48% in January compared with the same month last year, averaging the equivalent of $130 billion a day.

‘Currency war’ to be ‘lose-lose’ game: Strategist – CNBC
With each fresh headline of a central bank cutting interest rates comes rising concerns over the global race to the bottom. The result is that the world is heading toward a global currency war that Bank of America Merrill Lynch strategist David Woo said ultimately will have no winners.

BBA Backs Calls for ‘Licence to Trade’ After City Scandals – Financial Times (subscription)
The main lobbying group for British banks has said that all financial market traders should be required to gain professional qualifications in an attempt to avoid having a much tougher licensing regime imposed on the industry.

Denmark Increases Krone Sales to Protect Peg – Wall Street Journal (subscription)
Denmark’s central bank says it sold Danish kroner in record amounts in January to weaken the currency and protect its peg against a falling euro.

Dollar Recovers After Posting Largest Fall in More Than a Year – Reuters
The dollar index rebounded on Wednesday, after suffering its biggest one-day fall in over a year, helped by a jump in Treasury yields and expectations for upbeat US economic data later in the day.

Greece and the Euro Crisis: An Odd View of Democracy – The Economist (subscription)
Yes, the Greek voters have given their opinion but what about voters in other democracies? German voters, when polled, seem pretty clear that they don’t want Greece to be given debt forgiveness.

 

 

Regulatory News

ESMA Delays NDF Clearing Obligation
The European Securities and Markets Authority (ESMA) said in a feedback statement released today that it is not proposing a clearing obligation on non-deliverable forward (NDF) classes at this stage. ESMA believes that more time is needed to appropriately address the main concerns raised during the consultation.

Pension Funds Win Additional Two-Year EU Clearing Exemption – Financial News (subscription)
Pension funds will get a further two years’ exemption from having to implement new EU rules on derivatives, which it had been feared could undermine one of their most popular investment strategies — worth £500 billion in the UK alone.

UK’s Half-Hearted Currency Probe – BloombergView
The probe into currency market abuse seems to have been done on the cheap, making a mockery of the inquiry and belittling the damage done to the world.

Liquidity Threatened by Regulation, WMBA Says – Global Capital (subscription)
Market liquidity is at stake if a balance is not achieved between rules imposed by regulators and codes of conduct from within firms, according to David Clark, chairman of the Wholesale Markets Brokers’ Association.

 

 

Company News

Bats Won’t Hike Fees on Hotspot, Says Concannon – FX Week (subscription)
Bats Global Markets does not intend to hike fees on the recently acquired Hotspot, and it has no immediate plans to change the way the FX platform operates apart from relocating its matching engine to NY4 from its current KCG datacenter, says company president Chris Concannon.

FXCM CEO Drew Niv Discusses Future of the Firm and Retail Forex – Forex Magnates
Drew Niv sheds light on Black Thursday unfolding at FXCM: how did the systems react, what caused the $225 million loss and how many clients held long Swiss franc positions for a total market exposure of over $1 billion?

 

 

Market Savvy  

This Currency Would Be Great if it Wasn’t for the Market: RMB
Financial Times
China reported the largest deficit in its capital and financial account in more than a decade for the last quarter of 2014. It recorded a deficit of $91.2 billion, the State Administration of Foreign Exchange said Tuesday, based on preliminary estimates. A Great FX Outflow, indeed. It’s also a reminder of what market forces look like when acting on the CNY – and of China’s limitations where ECB-aggravated currency wars are concerned.

 

 

Press Releases

Icap Responds to European Commission Decision
Icap notes today’s decision of the European Commission to issue a fine of £11.3 million related to Yen Libor. Icap does not accept the EC’s decision, which it believes is wrong both in fact and in law.

BGC Extends All-Cash Tender Offer To Acquire GFI Group For $6.10 Per Share to February 19
BGC Partners has extended the deadline for its fully financed, all-cash tender offer to acquire all of the outstanding shares of GFI Group.

SmartStream Acquires Algorithmics Collateral Assets from IBM
SmartStream has acquired software, sales and support assets of IBM’s Algorithmics collateral solution.

 

 

Industry Events