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FXPA Welcomes Cantor Fitzgerald as Supporting Member

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FXPA Welcomes Cantor Fitzgerald as Supporting Member The Foreign Exchange Professionals Association (FXPA) is pleased to announce the addition of Cantor Fitzgerald as the newest Supporting Member of the FX trade group. “The FXPA has proven itself a well-rounded platform for positive dialogue in an evolving marketplace. This maturation will pose both new challenges and opportunities and we’re excited to join such a uniquely well-positioned association in addressing them,” says James Reilly, Senior Managing Director, Global Head of Foreign Exchange Sales and Trading at Cantor Fitzgerald. Read More
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FXPA Welcomes Cantor Fitzgerald as Supporting Member

The Foreign Exchange Professionals Association (FXPA) is pleased to announce the addition of Cantor Fitzgerald as the newest Supporting Member of the FX trade group. “The FXPA has proven itself a well-rounded platform for positive dialogue in an evolving marketplace. This maturation will pose both new challenges and opportunities and we’re excited to join such a uniquely well-positioned association in addressing them,” says James Reilly, Senior Managing Director, Global Head of Foreign Exchange Sales and Trading at Cantor Fitzgerald.
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US Justice Officials Seek Details on Tullett-ICAP Deal

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US Justice Officials Seek Details on Tullett-ICAP Deal – Reuters The U.S. Department of Justice has requested additional information over British interdealer broker Tullett Prebon Plc’s proposed acquisition ICAP Plc’s voice broking business, the companies said on Tuesday.

Citi Strikes $23M ‘Ice Breaker’ Settlement in Libor Action – Law360 Citigroup has reached a $23 million “ice breaker” settlement in a class action suit alleging it and other banks conspired to fix yen-denominated Libor interest rates, the first deal to be struck in the case, according to a filing in New York federal court.

China Will Probably Tighten Capital Controls, SocGen Says – Bloomberg China will probably have to step up capital controls as even the world’s biggest foreign-exchange stockpile won’t be sufficient to defend the yuan, according to Societe Generale SA.

Fed’s George Sees More Rate Hikes Coming Despite Market Swings – Reuters The Federal Reserve should push ahead with interest rate hikes because of the strong fundamentals of the U.S. economy, a Fed policymaker said on Tuesday, downplaying the impact of financial market volatility.

If No BOE Rate Hike Until 2018 Sounds Crazy, What About a Cut? – Bloomberg Here’s one question we never thought we’d ask in 2016: Is the Bank of England going to cut interest rates?

Wheeler Signals RBNZ Won’t Rush to Cut Rates on Low Inflation – Bloomberg New Zealand’s central bank signaled it won’t rush to cut its official cash rate further as inflation hovers near zero, saying it has the flexibility to look through the oil-price slump.

Q&A: WSJ Interview With ECB Executive Board Member Yves Mersch – Wall Street Journal (subscription) European Central Bank executive board member Yves Mersch sat down with The Wall Street Journal to discuss the European economic and inflation outlook.

 

 

Regulatory News

Eurex Clearing Receives US Regulatory Approval Eurex Clearing, Europe’s leading clearing house and part of Deutsche Börse Group, has been approved by the Commodity Futures Trading Commission (CFTC) as a registered Derivatives Clearing Organization (DCO).

FCA Warns on CFDs – Profit & Loss The UK’s Financial Conduct Authority (FCA) has issued a letter to CEOs of firms offering investors contract for difference trading, including “rolling spot FX” trading which suggests that these firms “may not be acting in the best interests of their clients”.

EU Says Money Laundering Law Should Cover Virtual Currency – Law360 The European Commission said Tuesday that it plans to bring exchanges for virtual currencies such as Bitcoin under the European Union’s anti-money laundering regime as part of a broader strategy to crack down on the financing of terrorist organizations.

 

 

Company News

CME Picks Former FX Research Head as Digital Lead Sandra Ro, who ran research and product development for FX and metals, has relocated from London to New York for her new role as digitisation lead. Ro joined CME in October 2011, according to her LinkedIn profile.

Goldman Sachs and IBM Join Investment in Digital Asset Holdings – Bloomberg Goldman Sachs Group Inc. and IBM are the latest firms to invest in Digital Asset Holdings, the startup led by former JPMorgan Chase & Co. banker Blythe Masters that aims to adapt blockchain technology to financial markets.

Japan’s Largest Bank Latest to Develop Own Digital Currency – CoinDesk Bank of Tokyo-Mitsubishi UFJ (MUFG) has revealed that it has developed its own digital currency nicknamed “MUFG coin” as part of its research into blockchain and distributed ledger technology.

 

 

Market Savvy  

Record Low US Treasury Yield In Sight as Global Slowdown Seen – Bloomberg Treasury benchmark yields fell to within half a percentage point of a record low as interest rates plunged around the world, raising concern the move foreshadows a global economic slowdown.

Fed vs. the Dollar: Why Yellen Can’t Win – Wall Street Journal (subscription) The U.S. dollar sits at the center of a tangle of negative feedback loops that are roiling financial markets and economies around the world. It is coming to the point where the Federal Reserve may have to try to cut through the snarl.

Yen Loses Half Post-BOJ Slide as Japan Yield Drops to G-7 Record – Bloomberg Negative Japanese policy rates have pushed the yield on the nation’s benchmark bond to the lowest among Group-of-Seven economies, but it’s not working its magic on the yen or domestic stocks, which are reversing course as a renewed selloff in crude oil makes investors risk-averse.

This Man Wants to Upend The World of High-Frequency Trading – MarketWatch When developers at a top U.S. stock exchange needed help debugging a program that puts time stamps on quotes and trades in July, they could have hired a high-profile consulting firm.

 

 

Press Releases

CME Group Hit Record Average Daily Volume of 18.2 Million Contracts per Day in January 2016, up 16 Percent from January 2015 CME Group announced that January 2016 volume averaged a record 18.2 million contracts per day, up 16 percent from January 2015.  Total volume for January 2016 was more than 345 million contracts, of which 85 percent was traded electronically.

Moscow Exchange Trading Volumes in January 2016 Moscow Exchange (MOEX) announces trading volumes for January 2016. The FX Market and Derivatives Market posted the strongest growth, with volumes increasing 157.1% and 94.6% YoY, respectively.

DTCC’s Legal Entity Identifier Service, GMEI Utility, Hits Key Milestone; Issues Over 200,000 LEIs 

 

 

Industry Events

 
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BOJ Shock Heralds Currency War Return as Yen Drops Most in Year

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BOJ Shock Heralds Currency War Return as Yen Drops Most in Year – Bloomberg The yen dropped the most in more than a year after Bank of Japan Governor Haruhiko Kuroda unexpectedly adopted negative interest rates, risking another round of competitive devaluations.

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BOJ Stuns Market With Negative Interest Rate Surprise

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BOJ Stuns Markets With Negative Interest Rate Surprise – Reuters The Bank of Japan unexpectedly cut a benchmark interest rate below zero on Friday, stunning investors with another bold move to revive the economy as volatile markets and slowing global growth threaten its efforts to beat deflation.

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RBS Trader Fired in Currency Probe Wins Suit, But No Money

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RBS Trader Fired in Currency Probe Wins Suit, But No Money – Bloomberg A former senior trader at Royal Bank of Scotland Group Plc who lost his job amid the currency market rigging scandal won part of an employment lawsuit, but received no compensation because a London judge said he would have been fired anyway.

Fed Seen Keeping Interest Rates Steady Amid Market Volatility – Reuters The Federal Reserve is expected to leave interest rates unchanged on Wednesday and acknowledge that turmoil in financial markets threatens its upbeat view of the U.S. economy, leaving the chances of a March hike diminished but alive.

China Shares Tumble Again, Taking 2016 Losses to $2 Trillion – Reuters Chinese shares fell sharply again on Wednesday after plunging in the previous session, taking losses in 2016 to nearly 25 percent or 13 trillion yuan.

China Goes After George Soros – Fortune China’s state press is warning George Soros not to bet against its currency after the hedge fund star-turned philanthropist predicted a “hard landing” for its economy last week.

PBOC Said to Ask China Banks to Suspend Offshore Yuan Loans – Bloomberg China’s central bank gave guidance two weeks ago to some Chinese banks in Hong Kong to suspend offshore yuan lending to curb short selling and tighten liquidity.

Rates Trading Activity Keeps SEF Volumes Level – Profit & Loss On average, $380.3 billion per day was traded on swap execution facilities (SEFs) in December, roughly in line with November but up 22% from December 2014.

Automated Hedge Funds Make Millions in January’s Market Selloff – Wall Street Journal (subscription) Tumbling oil prices, decline in global stocks provide near-ideal conditions for computer-driven funds.

 

 

Regulatory News

Andrew Bailey appointed as New Chief Executive of the FCA HM Treasury have today announced the appointment of Andrew Bailey as the new permanent Chief Executive of the Financial Conduct Authority (FCA).

EU Says to Monitor, Not Regulate ‘Hyped’ Virtual Currencies – Reuters The European Union will monitor rather than regulate “hyped” virtual currencies for now, because too little is known to justify new rules beyond reining in specific risks like money-laundering.

 

 

Company News

RBS Warns of Loss After Raft of Charges – Wall Street Journal (subscription) Charges include provision for looming U.S. settlement over sale of mortgage-backed securities.

Hotspot Launches New Private Liquidity Pool Service – Profit & Loss Hotspot today announced the launch of a new service designed to allow its clients to build private FX liquidity pools.

Samsung Securities to Settle on CLS in South Korea – Profit & Loss Samsung Securities has become the first non-bank financial institution (NBFI) to join the CLS system via third party access in South Korea.

Bridgewater’s Dalio Now Has the Most Profitable Hedge Fund – Bloomberg Ray Dalio of Bridgewater Associates overtook billionaire George Soros in 2015 as the man behind the hedge fund that has made the most money for investors in the history of the industry.

Seabury, Spotex Unveil Joint Product Offering – Profit & Loss Seabury Financial Solutions has entered into an agreement for a joint product offering between its FXone execution and liquidity management solution and ECN Spotex.

CMC Seeks £736m Value as it Joins the Stock Market – The Telegraph The spread-betting group CMC Markets is seeking a value of between £678m and £794m as it prepares to join the London stock market.

ParFX Adds Currency Pairs – Profit & Loss Tradition’s ParFX has added six crosses to its list of currencies supported on the platform, including the Hungarian forint.

Eris Expands its Standard Swaps Futures Complex – Profit & Loss Eris Exchange has expanded its flagship Eris Standard US Dollar Interest Rate Swap Futures complex.

 

 

Market Savvy  

Fed Seen Keeping Interest Rates Steady Amid Market Volatility – Reuters The Federal Reserve is expected to leave interest rates unchanged on Wednesday and acknowledge that turmoil in financial markets threatens its upbeat view of the U.S. economy, leaving the chances of a March hike diminished but alive.

China GDP Growth Could Be as Low as 4.3%, Chinese Professor Says – Wall Street Journal (subscription) As growth in the world’s second-largest economy slows, the spotlight has intensified over the accuracy of China’s growth figures.

 

 

Press Releases

Intercontinental Exchange Announces Senior Management Promotions Intercontinental Exchange, Inc, a leading operator of global exchanges, clearing houses and data services, announced the following leadership appointments effective Monday, February 1, 2016, each of which will report directly to ICE Chairman and CEO Jeffrey C. Sprecher.

 

 

Industry Events

 
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China’s Central Bank Prioritizes Strong Yuan When Managing Liquidity

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China’s Central Bank Prioritizes Strong Yuan When Managing Liquidity –Wall Street Journal (subscription) China’s central bank faces a tough balancing act, trying to ease credit in the financial system without adding to pressures weakening the Chinese currency.

Desperate in Davos: Policymakers Struggle for Answers – Reuters Angela Merkel was missing from Davos this year, but the German leader’s optimistic mantra “we can do this” echoed through the snowy resort in the Swiss Alps.

Dollar Edges Down But Close to Recent Highs; Fed, BOJ in Focus – Reuters The dollar edged down on Monday but remained well off recent lows as markets started the week on a calmer note and investors turned their attention to upcoming central bank meetings.

There’s a Giant Elephant at the Bank of England – Bloomberg It’s a new year and Bank of England officials have been sharing their views on the outlook for the U.K. and the risks. Well, some of the risks.

China to Set Up its Own Virtual Currency – The Register The People’s Bank of China (PBOC), China’s central bank, hopes to launch its own virtual currency to cut the cost of handling paper money and to give the government more control of the country’s money supply.

Russian Officials Seek to Reassure Markets They Have Control Over Ruble – Wall Street Journal (subscription) Top Russian officials Friday sought to reassure markets they have control over the ruble and that its drop to all-time lows has a silver lining.    ‘

No Crisis’ Norway Holds Talks on Economic Cost of Oil’s Plunge – Bloomberg Norway’s prime minister, finance minister and central bank governor are holding an extraordinary meeting to assess just how bad the deepening plunge in the price of oil will be for the overall economy of Western Europe’s biggest petroleum producer.

 

 

Regulatory News

Kuroda Advises China to Impose Capital Controls to Defend Yuan – Bloomberg Bank of Japan Governor Haruhiko Kuroda said China should impose capital controls to defend the yuan rather than keep burning through currency reserves.

CFTC Grants Final Registration to 18 SEFs – Profit & Loss The US Commodity Futures Trading Commission (CFTC) has granted final registration to 18 swap execution facilities (SEFs). Prior to this, the SEFs had been operating under a temporary registration status.

Canadian Securities Regulators Implement Derivatives Reporting Rules – MondoVisione Securities regulators in Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Saskatchewan and Yukon (the participating jurisdictions) today announced the implementation of new Multilateral Instruments 91-101 Derivatives: Product Determination and 96-101 Trade Repositories and Derivatives Data Reporting.

U.S. Banks Cut Off Mexican Clients, as Regulatory Pressure Increases – Wall Street Journal (subscription) U.S. banks are cutting off a growing number of customers in Mexico, deciding that business south of the border might not be worth the risks in the wake of mounting regulatory warnings.

 

 

Company News

Cross Joins HSBC GAM – Profit & Loss Former head of the FX division at the Bank of England, Michael Cross, has joined HSBC Global Asset Management.

Asset Managers Need to Get Ready for a Big Tech Shift – eFinancialNews Asset management chief executives yet to develop a digital strategy should be locked in a dark room with their mobile phones until they find one.

IBM, Apple Profit Have Forex Risk as Hedges Come Off in 2016, Says Morgan Stanley – Barrons The disappointing profit outlook offered by International Business Machines (IBM) on Tuesday afternoon is a harbinger of pain to come for tech from foreign exchange this year, writes Morgan Stanley’s hardware analyst, Katy Huberty, in a note to clients.

 

 

Market Savvy  

Offshore Yuan Advances as Xinhua Claims Short Sellers Will Lose – Bloomberg The offshore yuan rose for the first time in five days after China stepped up verbal defense of its currency to ward off speculators betting on depreciation.

Market Volatility Did the Work of Four Fed Rate Hikes: Morgan Stanley – Bloomberg Volatility in financial markets since the Federal Reserve last month announced its first interest-rate increase in nearly a decade is having the same effect as four additional quarter-point hikes, according to Morgan Stanley.

Hong Kong Dollar Likely to Come Under Additional Pressure This Week – South China Morning Post The battle between currency speculators and Hong Kong Monetary Authority will remain in focus this week amid a gloomy market sentiment worldwide.

Currency Woes Lead Brazil to Offer Support for Companies – Financial Times Brazil’s central bank is helping Brazilian companies to cope with market volatility by offering programmes to hedge currency risk.

 

 

Press Releases

Falling EM Claims Lead to Lower Q3 Cross-Border Lending – BIS – Profit & Loss The latest quarterly international banking statistics from the Bank for International Settlements (BIS) show cross-border bank lending shrank for the second consecutive quarter, driven by falling claims on major emerging market economies.

 

 

Industry Events