Banks Face US Court Challenge Over FX Futures Manipulation – Profit & Loss(free story)
A number of major banks are now under fire in a US court for allegedly manipulating the FX markets on futures exchanges, including CME and the Intercontinental Exchange (ICE) Futures US.
Goldman Said to be Ready to Settle Currency Manipulation Lawsuit –Bloomberg
Goldman Sachs has reached a preliminary agreement to settle a lawsuit over currency rate manipulation for $129.5 million, a person familiar with the matter said.
For Leucadia National, a Big Bet Pays Off – Wall Street Journal (subscription)
A big bet, made quickly amid crisis, is proving a big winner. Leucadia National, parent company of investment bank Jefferies, has so far tripled the money it invested in an 11th-hour rescue of troubled retail currency brokerage FXCM earlier this year, the company reported on Friday.
Pension Fund Sues FXCM for Fraud Over Drop in Stock on Swiss Franc –Reuters
A pension fund has sued US currency broker FXCM for allegedly misleading investors about its financial prospects and concealing weaknesses in its core business before its stock dropped 90% in January.
Are Liquidity Levels Better in the Age of Electronic Market Making? – Profit & Loss (subscription)
There is a school of opinion that liquidity in foreign exchange markets is not what it was. A fairly significant proportion of people I speak to and several reports I read mention this issue as though it is a fact, but I am not sure it is.
Currencies’ Wild Ride to Get Wilder as US Rate Rise Beckons – Bloomberg
If you thought the past week in the foreign exchange market was wild, you haven’t seen anything yet. That’s the outlook from investors and strategists ranging from State Street Global Advisors to Cambridge Global Payments after price swings in the euro versus the dollar approached the highest level in more than three years.
Euro Slips on Unease Over Greek Talks – Reuters
The euro slipped against the dollar on Monday, as many investors took a pessimistic view of the latest round of euro zone talks on a cash-for-reform deal for Greece.
China Swaps, Yuan Decline After Third Rate Cut in Six Months – Bloomberg
China’s interest rate swaps fell to the lowest level in almost three years and the offshore yuan declined after the central bank reduced benchmark borrowing costs for the third time in six months.
A Bitcoin Technology Gets Nasdaq Test – Wall Street Journal (subscription)
Nasdaq OMX Group is testing a new use of the technology that underpins the digital currency Bitcoin, in a bid to transform the trading of shares in private companies.