Barclays Boosts Expected Bill for Foreign Exchange Fines to More Than $3 Billion – Wall Street Journal (subscription)
Barclays boosted its expected bill for foreign exchange fines to more than £2 billion on Wednesday and said it is working hard to settle investigations with global regulators.
Citigroup Cut Corbat’s Pay Over Currency Rigging, Chairman Says – Bloomberg
Citigroup cut chief executive officer Michael Corbat’s 2014 compensation in part because he failed to stop traders from rigging the foreign exchange markets, chairman Michael O’Neill said.
Centralised Risk Raises Systemic Worries Over Derivatives – Financial Times (subscription)
Six years after the financial crisis exposed the systemic dangers of derivatives, the industry faces questions as to whether risk management systems will contain the next major bout of market turmoil. FIA Global, the futures industry trade association, will add its voice to a growing debate about the role of clearing houses.
Cost and Tight Regulation Slow CNY Derivatives Growth, Says CFFEX – Asia Risk (subscription)
A combination of high trading costs in Shanghai and a conservative regulatory climate that fears the destabilising effects of a potential speculative bubble are slowing down a much-needed expansion of the onshore (CNY) currency derivative market, according to a senior official of the China Financial Futures Exchange (CFFEX).
Hedge Funds Lead Shift In Dollar Sentiment – Wall Street Journal (subscription)
Betting that the dollar will keep pushing higher against major currencies has lost its allure. Up until a few weeks ago positioning for a further climb of the dollar against the euro and the yen was the only game in town, but investors and traders’ are scaling back on the trade, according to the latest positioning data from the Commodities Futures Trading Commission, which measures a portion of the market that serves as a good proxy for the whole.
Central Banks Choose Pythonesque Approach as New Tool – Financial Times (subscription)
As Michael Palin pointed out in Monty Python’s Spanish Inquisition sketch, “our chief weapon is surprise”. That sentiment could just as easily be applied to central banks, as they struggle to stimulate their economies and rouse inflation.
Euro Rises Above $1.10 as Dollar Under Pressure Before Fed, US Data – Reuters
The euro rose above $1.10 for the first time in three weeks on Wednesday, buoyed by data that showed a eurozone recovery was gathering pace and as investors cut long dollar bets ahead of US growth data and a Federal Reserve statement.