Banks Likely to Trim Their Customer Bases – Profit & Loss (subscription)
The capital available to bank FX businesses is much reduced compared to a short time ago; the impact of the Fix fiasco is seeing more players pull back from proprietary risk taking and pushing more towards an agency model; the lessons of the SNB event are still being absorbed; and then there is the “hot” topic of last look being openly debated around FEMR and, possibly, by certain regulatory agencies. All of this is likely to lead to several players doing what some institutions did years ago, and trim their customer bases.
US Regulators Step Up FX Settlement Talks – Sky News
A settlement involving the Department of Justice, the New York State Department of Financial Services and other regulators could come as soon as the end of March, according to insiders.
US Probe Delays Barclays FX Settlement – Financial Times (subscription)
The New York Department of Financial Services’ probe of Barclays’ foreign exchange trading business is holding up a settlement of currency rate rigging allegations that other US and UK authorities are close to resolving, people familiar with the case said.
Barclays to Double Provision for FX Rigging to at Least £1bn – The Times (subscription)
Barclays is expected to more than double its existing financial provision for alleged manipulation of foreign exchange markets to at least £1 billion when it reports its annual results next week.
Dollar on Track for Eighth Month of Gains on US Data, Fed Outlook – Reuters
The dollar index slipped on Friday, pegged back by month-end selling, but was still on track for its eighth straight month of gains on better data and comments from Federal Reserve officials that bolstered bets for a rate rise this year.
Rouble Heads for Best Month Since 1990s – Financial Times (subscription)
Russia’s rouble is heading for its best month in at least two decades as stabilising oil prices and a tentative ceasefire between Moscow-backed Ukrainian separatists and the Kiev government sent investors back into Russian markets.
German Lawmakers Approve Greek Bailout Extension – Reuters
Germany’s parliament approved an extension of Greece’s bailout today after Finance Minister Wolfgang Schaeuble, who has voiced doubts about whether Athens can be trusted, promised he would not let Greece “blackmail” its eurozone partners.
China’s Yuan Slumps on Growth Worries – Wall Street Journal (subscription)
China’s yuan fell to its weakest level against the dollar in more than two years on Friday, extending a decline driven by the prospect of a slowdown in the world’s second-largest economy.
Turkish Lira Declines to Fresh Record – Wall Street Journal (subscription)
Turkey’s lira slumped to a fresh record against the dollar Friday, with losses outpacing most emerging markets peers amid a broader selloff on mounting political pressure on the country’s central bank.
Price is Sole Factor in Best Execution: Pimco – Risk.net (subscription)
Dealers are trying to lure clients into thinking about best execution in terms other than pure price, a portfolio manager at Pimco argued yesterday at a conference in London. Fellow bank panellists had suggested a distinction between best price – which should be the goal of more “vulnerable” clients – and fair execution, which would serve the need of more sophisticated customers.