Barclays Set for Record UK Bank Fine

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Top Headlines

Barclays Set for Record UK Bank Fine – the Telegraph
The City watchdog is expected to hand out its biggest-ever fine to Barclays on Wednesday as the British bank becomes the last major financial institution to settle foreign exchange rigging allegations in the UK.

New FX Settlements Won’t Spell the End of Banks’ Legal Woes – Profit & Loss(free story)
With a number of major banks expected to agree a settlement with the US Department of Justice (DoJ) this week over allegations of FX market manipulation, could the industry be ready to put this issue to bed and get back to business?

Forex Rigging Settlement: 10 Things You Need to Know – Financial Times(subscription)
A $6 billion settlement between US prosecutors and five banks over allegations they rigged foreign exchange benchmarks is looming. That is in addition to a November deal where banks paid $4.3 billion. Confused? Here are 10 things you need to know about the deal.

Euro Wreaks Havoc on Carry Trades in Rally Almost No One Foresaw –Bloomberg
It was supposed to be so easy. Borrow in euros as the European Central Bank kept interest rates near zero and use the proceeds to invest in the economies where rates are higher, pocketing the difference and generating huge profits.

Taking the DoJ to Task for Telling Other Jurisdictions How to Mind Their House – Profit & Loss (subscription) 
What is it about the US and the news cycle? Why is it, every time I am about to embark on a visit to the US, that I am moved to criticise a government agency there?

SNB Says Looking at Franc Rate Against Several Currencies – Reuters
Switzerland’s central bank is monitoring the value of the Swiss franc against a number of currencies and is satisfied with the impact of negative interest rates, one of its board members told local newspapers.

Number One Currency Manipulator – Wall Street Journal (subscription)
Aren’t monetary policy shifts by the Federal Reserve the essence of currency manipulation?

Russia Dirty Float Outed by Traders as Central Bank Sells Rubles – Bloomberg
For all Russia’s talk of a free-floating exchange rate, central bank actions are telling traders it’s still being managed. While the Bank of Russia said its purchases of dollars last week were aimed at replenishing foreign currency reserves, Goldman Sachs and Morgan Stanley see curtailing the world’s biggest currency rally as the real motive.

Bundesbank Sees IMF Decision as Key to Yuan as Reserve Currency –Bloomberg
The International Monetary Fund holds the key to the Chinese yuan becoming an international reserve currency through a review of its Special Drawing Rights basket, according to Bundesbank board member Joachim Nagel.

Regulatory News

Does the UK Election Outcome Boost FEMR’s Chance of Becoming a Global Blueprint? – Profit & Loss (free story)
The Wholesale Markets Brokers’ Association (WMBA) has highlighted the potential for the UK’s Fair and Effective Markets Review to become a global blueprint, helped along by a recent additional boost from the country’s general election outcome.

Assistant Attorney General Bill Baer Delivers Testimony Before US House of Representatives Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law (press release)
Assistant Attorney General Bill Baer talks about the Antitrust Division’s efforts to uncover and prosecute cartel behaviour, which the Supreme Court has described as “the supreme evil of antitrust”.

ESMA Delays Review of MiFID II Standards Until September – Risk.net(subscription)
The hiatus gives the fund industry less time ahead of January 2017 implementation.

BoE Expects Clearing Members to Engage CCPs on Risk Governance – Profit & Loss (free story)
David Bailey, director, financial market infrastructure at the Bank of England (BoE), has warned clearing members that the central bank expects them to be actively engaged in CCP risk governance.

Russia to Welcome Foreign FX Brokers…But Not Offshore Ones – LeapRate
The Bank of Russia has just published a draft normative act that details the requirements for foreign forex companies willing to set up representative offices and market their services in Russia.

Russian Court Overturns Ban on Access to Bitcoin Websites – Bitcoin Magazine
Interest in Bitcoin and blockchain technology by business and governments around the world increased in the past months. However, many governments have yet to take an official stance on digital currencies while some have placed restrictions or regulations on the use of Bitcoin. Russia was one of these countries, as it blocked access to websites with information about Bitcoin.

Company News

Citi Shuts Down Alternative Credit Programme After SNB Move – Profit & Loss(free story)
Citi took the decision to close its alternative credit programme (ACP) in January following the market chaos caused by the Swiss National Bank’s (SNB) sudden removal of its three-year 1.20 EURCHF floor.

On the Record: Bringing Parity to FX Data in an Age of High-Frequency Trading – Waters Technology (subscription)
With low latency arbitrage strategies moving from equities markets into the $5.3 trillion per day currency markets, ParFX, the electronic spot foreign exchange marketplace owned by interdealer broker Tradition, is already offering features designed to protect data consumers from the speed and cost disparities of high frequency trading, says ParFX chief executive Dan Marcus.

CME Globex Update Shifts to Commodities, FX – FOW
Performance enhancements on CME Group’s Globex continued yesterday, focused on a raft of FX options and commodity futures, as the exchange makes a series of updates to improve latency in futures and options trading on the platform.

Alpari UK Clients to Receive Compensation Payments – Profit & Loss (free story)
KPMG, the administrator of the now-defunct retail FX broker Alpari UK, says clients who chose to pass their claims to the Financial Services Compensation Scheme (FSCS) will start to receive their compensation payments.

Market Savvy  

Dollar Pushes Higher, But Near Lows After Downbeat US Data
Reuters
The dollar clawed its way higher but remained not far from a three-month low against the euro in Asian trade on Monday after downbeat US economic data raised bets that the Federal Reserve will wait longer to raise interest rates.

Asian Currencies Still on the Straight and Narrow
Olivier Desbarres
Non-Japan Asia (NJA) currencies have weakened in the past four weeks, led by sharp falls in the INR, THB and IDR. Rising oil prices and tepid exports are amongst the common factors behind this currency weakness.

Pound’s Post-Election Rally is Seen Challenged into Second Week
Bloomberg
The pound’s world-beating performance this week following the UK election is prompting strategists to question whether the currency has room to appreciate.

Press Releases

Icap’s EBS eFix Matching Meets FX Market’s Need for Auditable Electronic Fix Execution
Icap, a markets operator and provider of post-trade risk mitigation and information services, reports on the progress of its eFix Matching solution one year after launch. The result of a collaboration between EBS, Icap’s electronic foreign exchange business and Global Broking, eFix Matching enables customers to execute Fix interest electronically on the EBS Market platform. A robust and independent industry solution, it provides anonymous access to a central pool of liquidity for the most liquid daily fixes, including the ECB 13:15 Fix, WMR 16:00 Fix, HSRA AUD/USD Fix and EMTA USD/RUB Fix, and improved global matching opportunities.

CME Group and Korea Financial Investment Association Sign Letter of Intent for Greater Collaboration
CME Group, the world’s leading and most diverse derivatives marketplace, and Korea Financial Investment Association (KOFIA), have signed a letter of intent (LOI) to explore mutual collaboration in the areas of market education and training.

Industry Events