Banks’ Civil Forex Settlements Near $2 Billion – Wall Street Journal(subscription)
The total amount paid by banks to settle a civil lawsuit tied to allegations traders manipulated the currency market has now reached almost $2 billion following a recent round of settlement agreements.
Accountability for Conduct Dominant Theme at Iosco – Profit & Loss (free story)
Making management more accountable for conduct and culture was a prevalent theme in private member meetings this week, according to the chairman of the International Organisation of Securities Commissions (Iosco), the global umbrella body for securities regulators.
UK Watchdog Defends Hefty Fines for Banks Who Break Rules – Reuters
Stiffer fines for banks caught trying to rig markets have not undermined financial stability or the ability of lenders to stay solvent, a senior British regulator said on Wednesday.
China Banks Turning Net Foreign Exchange Buyers Stabilise Flows –Bloomberg
China’s banks turned net buyers of foreign exchange on behalf of their clients in May for the first time in nine months, signalling capital flows are stabilising. Lenders purchased CNY 24.5 billion yuan ($3.95 billion) more overseas currencies than they sold last month, the State Administration of Foreign Exchange said in a statement on Thursday.
FX: The Great Internalisation Debate – Euromoney
The widespread practice of internalisation in foreign exchange has officially come under fire from regulators for a lack of transparency and is fast losing its shine, but it remains crucial to the smooth running of the world’s largest market.
Derivative Exchanges Eye Asia for Growth and Liquidity – Profit & Loss (free story)
Major derivative exchanges are keeping a close watch on developments in Asia, particularly China, as higher margin requirements in Europe and the US encourage institutional investors to move clearing to other jurisdictions.
HFT Nightmare Gets Some Validation, But Only if You’re a Whale – Bloomberg
To critics, high frequency traders harm other investors by sniffing out their strategies and completing the juiciest trades first. New academic research from the Netherlands suggests naysayers have it at least partly right.