Global FX Committee Adds Pre-Hedging Example; Reports on Progress
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Global FX Committee Adds Pre-Hedging Example; Reports on Progress – Profit & Loss
The Global Foreign Exchange Committee (GFXC) has added a negative example for Principle 11 of the FX Global Code – which deals with pre-hedging – to the document’s Annex. The update has been released alongside the minutes from the GFXC’s recent meeting in South Africa, as well as a paper that reviews developments since the May 2017 launch of the FX Global Code and outlines the GFXC’s near-term priorities.
Greenwich Sees e-Trading Shift from FX
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Greenwich Sees e-Trading Shift from FX – Profit & Loss
A new report from research group Greenwich Associates says that the focus of e-trading efforts in financial markets is switching away from mature markets like FX and into high yield bonds and cash equities.
FX Trading Volumes Flat in July vs Last Year: NEX Group
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FX Trading Volumes Flat in July vs Last Year: NEX Group – Reuters
Average daily trading volumes of currencies in July remained broadly flat compared to the previous year, NEX Group said on Friday, despite an uptick in tensions over global trade that rattled forex markets.
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Industry Bodies Must Step Up to Fight FX Industry’s Corner
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Industry Bodies Must Step Up to Fight FX Industry’s Corner – Profit & Loss (subscription)
In this column on June 7 2018 I wrote that the time had come for someone to show industry leadership when it comes to arguing the foreign exchange industry’s corner specifically around pre-hedging and Mark Johnson’s pending appeal. This week it has been revealed that ACI – The Financial Markets Association is to draft a response to Mark Johnson’s defence team’s call for Amicus Briefs – independent expert submissions – to support his appeal. I understand that other Briefs are also being written for submission; however, they are not from associations. I cannot stress enough how important it is for the associations that represent so many of their members contribute to this case.
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Credit Suisse Charged With Rigging Foreign Exchange Rates
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Credit Suisse Charged With Rigging Foreign Exchange Rates – Reuters
Credit Suisse has been charged by European Union antitrust regulators with rigging foreign exchange rates, the Swiss bank said on Tuesday, a sign that the five-year-long EU investigation may reach a conclusion in the coming months.
ACI to File Amicus Brief for Mark Johnson Appeal
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ACI to File Amicus Brief for Mark Johnson Appeal – FX Week (subscription)
The ACI Financial Markets Association (ACIFMA) is planning to file an amicus brief, supporting the appeal of former HSBC executive Mark Johnson, who was convicted of wire fraud relating to a $3.5 billion foreign exchange order in October 2017.
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The Shift from Anonymous Venues to Disclosed Channels
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The Shift from Anonymous Venues to Disclosed Channels – Profit & Loss (subscription)
There are those in the FX world who believe that the narrative in certain circles of a return to bilateral, relationship-based trading was a group of liquidity providers talking their book and hoping to push the market away from what could sometimes be costly anonymous trading venues. Looking at the numbers in last week’s FX committee turnover surveys, specifically the spot e-trading statistics from the UK and US, I think it is fair to say that the cynicism is wrong, or the narrative is working, or both.
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Oversight Row Could Block EU Firms from US Clearing: Giancarlo
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Oversight Row Could Block EU Firms from US Clearing: Giancarlo – Risk.net (subscription)
If European lawmakers will not defer to the US’s supervision over its own central counterparties, they will only have themselves to blame when EU firms are cut off from vital markets. That was the message from the chair of the Commodity Futures Trading Commission during an appearance before the House Committee on Agriculture on Wednesday.
Newer Firms Muscle in on Banks’ Forex Territory
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Newer Firms Muscle in on Banks’ Forex Territory – Reuters
Newer financial trading firms are expanding the volume of foreign exchange they trade in a market traditionally dominated by the big banks, industry data and rankings show.
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Boom Time for FX Volumes as New Peak Hit
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Boom Time for FX Volumes as New Peak Hit – Profit & Loss
The latest round of FX turnover data from six of the world’s FX Committees shows volume at its highest level since they started recording results in 2005. The new high mark was powered by new peaks in activity in the UK, Singapore, Japan and Canada.