Bank Malpractice and FEMR on the Agenda for Mansion House Speech

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Top Headlines

Bank Malpractice and FEMR on the Agenda for Mansion House Speech – Profit & Loss (free story)
Malpractice within the banking system and outcome of the Fair and Effective Markets Review (FEMR) are likely to be the key themes in the Mansion House speech delivered on Wednesday, according to one market source with knowledge of the matter.

Barclays Africa Says No Word From Authorities Over FX Probe – Reuters
Barclays Africa Group has not yet been approached by South Africa’s competition regulators over a currency fixing probe launched last month, its chief executive said on Friday.

Conduct and Compliance: Top of Mind for New FX Traders – Profit & Loss(subscription)
Regular readers will know I help out on the ACI Australia Dealing Simulation Course when possible and last week, on the ACI UK hosted course, I noticed a significant change in tone during one session.

Misguided Argument During Forex Negotiations Shocks DoJ Fraud Chief –Global Investigations Review (subscription)
During forex settlement negotiations with the DoJ, a bank argued for remediation credit because its failure to run risk assessments was down to insufficient regulation.

Loh Appointed Chief Executive of SGX – Profit & Loss (free story)
Singapore Exchange has appointed Loh Boon Chye, the former head of global markets for Asia-Pacific at Bank of America, as chief executive officer, replacing Magnus Bocker as head of South East Asia’s biggest exchange.

Banks’ Post-Crisis Legal Costs Hit $300 Billion – Financial Times(subscription)
The total cost of litigation aimed at a group of the biggest global banks since 2010 has broken the £200 billion ($306 billion) barrier, according to a new study that challenges assumptions that banks are through the worst of post-crisis reparations.

Regulatory News

FCA Consults on ‘Frand’ Access to Regulated Benchmarks – Profit & Loss(free story)
UK watchdog, the Financial Conduct Authority, has issued a consultation paper that sets out its proposals for fair, reasonable and non-discriminatory (Frand) access to regulated benchmarks by benchmark administrators.

Banks Step Up Fightback Against Wave of UK Regulation – Financial Times(subscription)
Banks are stepping up public attacks against a wave of regulation intended to make the financial system safer but which, they complain, eats into their profits and hurts the UK’s competitiveness.

Iceland Lawmakers Close Krona Control Loopholes Before Exit – Bloomberg
Iceland’s parliament passed a bill to close some loopholes in its capital controls as the government prepares to unveil legislation to start unwinding a regime in place for almost seven years.

Company News

Deutsche Bank Co-CEOs Jain and Fitschen Resign – Wall Street Journal(subscription)
The embattled co-chief executives of Deutsche Bank announced their resignations on Sunday, an abrupt move that throws into question the future direction of one of the world’s largest banks.

Thomson Reuters Adds FXall Liquidity to White-Label Product – Profit & Loss(free story)
Thomson Reuters (TR) has added liquidity from its multi-bank platform FXall to its bank-to-customer e-commerce platform, Electronic Trading, as part of key enhancements to enrich liquidity and reduce latency.

TriOptima to Expand Cross-Currency Compression Service – Profit & Loss(free story)
TriOptima, a provider of over-the-counter derivative post-trade services, has completed its first USD/KRW compression cycle via its TriReduce service, eliminating $8.8 billion notional principal. The company says 11 institutions took part in the cycle, including international and South Korean banks.

Major Changes Afoot at Jefferies Following Faros Integration – Profit & Loss(free story)
Jefferies Group, a wholly owned subsidiary of Leucadia National Corporation, is making significant changes to its FX department, marking the completion of the acquisition of Faros Trading.

Exchange Launches Asset-Backed Coins for Asset Managers – FX Week(subscription)
Abacas Asset managers will be able to trade physical assets directly with each other without incurring multiple transaction fees through a new asset class dubbed asset-backed coins (ABCs), which represent assets and currencies in one, says Morgan McDonnell, chief operating officer for Abacas, the exchange for ABCs.

Thomson Reuters Volume Up Y-o-Y, Down M-o-M – Profit & Loss (free story)
Average daily volume for spot trading across Thomson Reuters’ platforms in May was $110 billion, down from $118 billion in April but up from $103 billion in May 2014.

Market Savvy  

Dollar Falls as Obama Said to Call Currency’s Strength a Problem
Bloomberg
The dollar slid after a French official said US President Barack Obama told delegates at a G7 summit on Sunday that the strong dollar posed a problem. The greenback dropped against the euro and yen as the French official made the comments to reporters on Monday.

US Dataflow and Light Positioning to Maintain Bullish USD Trend
BNP Paribas 
The USD temporarily reversed some of post-payroll gain this morning on misquoted headlines from US President Obama that the strong US dollar was “a problem”. The impact swiftly unwound and we think that, going forward, the strong May employment report has ushered in a new period of positive momentum for the USD. We expect the USD to extend its gains with focus this week on May’s retail sales report (Thursday), which should provide support for our view that the Fed will begin hiking rates in September.

Turkey’s Lira Hits Record Low After Election Jolt for Ruling AKP
Reuters
The Turkish lira hit a record low in weekend-thinned trade on Sunday, after the governing AK Party failed to win an outright majority in a parliamentary election, unsettling investors with the prospect of a minority or coalition government.

Press Releases

FIA Europe Publishes Review of European Regulatory Reform
FIA Europe has published a review of the cumulative effect of European derivatives law reform, setting out the core issues and offering potential solutions to encourage further debate.

Luxembourg Signs MoU With Toronto Financial Centre
Luxembourg for Finance and the Toronto Financial Services Alliance (TFSA) have signed a memorandum of understanding to establish a partnership framework to develop their respective financial services industries, including the continued development of each jurisdiction as a hub for renminbi trading.

Industry Events