Banks’ Multi-Billion Dollar FX Settlements Delayed – Financial Times (subscription)
The latest multi-billion dollar round of settlements between banks and regulators for rigging foreign exchange markets has been delayed by about a week, people familiar with the situation said. Barclays, Royal Bank of Scotland, JP Morgan Chase, Citigroup and UBS were expected to be fined collectively more than $6 billion today, with most of the fines going to the US Department of Justice.
US Set to Rip Up UBS Libor Accord, Seek Conviction – Bloomberg
The US Justice Department is set to rip up its agreement not to prosecute UBS Group for rigging benchmark interest rates, according to a person familiar with the matter, taking a new step to hold banks accountable for repeat offenses. The move by the US would be a first for the industry.
Report: Top Five Banks Lost 2% of FX Market Share in 2014 – Profit & Loss (free story)
The top five dealers in global FX trading collectively ceded market share to rivals last year, according to a new report from Greenwich Associates.
Don’t Relax Just Yet, Euro-Dollar Parity’s Still On its Way – CNBC
The euro hung onto gains on Wednesday after the US dollar tumbled against the single currency on Tuesday, following a spike in German and US government bond yields which rattled markets and pushed investors to reconsider their short bets on the euro.
Euro Woes Won’t Hurt its Global Reserve Currency Status: Nomura – Reuters
Question marks over the euro’s prospects as a sought-after global reserve currency are premature even though its presence in central bank’s reserves is likely to drop to historical lows, Nomura said on Tuesday.
Yield-Hungry Investors are Re-Fuelling the Currencies Trading Market –Bloomberg
Foreign exchange managers are back in vogue. Millennium Global Investments has received $1.7 billion this year for funds that manage currency exposure to boost returns, after attracting no new cash in the same period of 2014. Adrian Lee & Partners, another specialist in the so-called overlay strategies, has grown its funds by 50% in the past year to $6 billion.