Big Banks Accused of Interest Rate Swap Fixing in US Class Action Suit

globalFXsource0

Top Headlines

Big Banks Accused of Interest Rate-Swap Fixing in US Class Action Suit – Reuters A class action lawsuit, filed Wednesday, accuses 10 of Wall Street’s biggest banks and two trading platforms of conspiring to limit competition in the $320 trillion market for interest rate swaps.

Draghi, a Rabbit, the Euro and the Magic Trick Traders Envision – Bloomberg Mario Draghi needs to come up with something to surprise currency traders next week or risk a euro rebound that would threaten his efforts to boost inflation.

China Allows First Foreign Institutions into Interbank FX Market – Reuters The first batch of foreign central banks, sovereign wealth funds and international financial institutions have been registered to enter China’s interbank foreign exchange market, the country’s central bank said on Wednesday.

Barclays Fined $109 Million for Risk Failings on ‘Elephant Deal’ – Bloomberg Barclays Plc was fined 72.1 million pounds ($109 million) by U.K. regulators for failings related to a group of “politically exposed” ultra-high-net-worth clients who carried a “higher level” of risk.

 

 

Regulatory News

The Train on Platform MiFID 2 is Delayed by One Year – Fidessa Fragmentation Not surprising to see that it now looks odds-on that we’ll get a full one year delay on the implementation of MiFID 2.

Legal Scrutiny over FX Spoofing Claims Intensifies – Euromoney The New York Attorney General’s decision to investigate the posting of false bids and offers in the FX options market for emerging-market currencies is further evidence of increasing regulatory interest in spoofing.

High-Speed Traders Face New CFTC Scrutiny – Financial News (subscription) The Commodity Futures Trading Commission took its first concrete step toward boosting oversight of rapid-fire traders.

 

 

Company News

Brazil Corruption Probe Widens; Senate Leader, BTG Pactual CEO Arrested – Reuters The chief executive of Brazil’s biggest independent investment bank and the leading senator in the governing coalition were arrested on Wednesday on suspicion of obstructing the country’s most sweeping corruption investigation ever.

CLS, Markit Launch Settlement Service – Profit & Loss CLS Group (CLS) and Markit today announced the launch of a new FX settlement service for cross currency swaps.

2016 The Year of The Yen – JP Morgan – Profit & Loss JP Morgan (JPM) has released its 2016 currency forecasts and among the majors, the bank’s analysts pick the Japanese yen (JPY) as the star-turn for next year.

 

 

Market Savvy  

Global Stocks Edge Higher – Wall Street Journal (subscription) Investors remain focused on monetary policy from the U.S. Federal Reserve and the ECB.

Japan’s Nikkei Flirts With 20000, but Falls Short – Wall Street Journal (subscription) Weakening yen lifts Nikkei to highest level since late August; Japan shares outpace most Asian peers this year.

Traders Turn Against Pound With Most Bearish Bets in Four Months – Bloomberg The pound’s appeal is eroding. Options traders are the most bearish on the currency against the dollar in more than four months.

Investors Dig for Winners in Commodity Currencies – Wall Street Journal (subscription) With U.S. rate rise looming, strategists embrace unorthodox methods to unearth winners among likely losers.

Why is Bad Behaviour by Bankers Just Another Risk? – Standard The reason I ask is that so consistently bad has the behaviour of bankers been that regulators are now factoring it in as a risk — the same as credit or market risks.

Dubai Gold and Commodities Exchange to Launch Chinese Yuan Futures – 7 Days The Dubai Gold and Commodities Exchange will soon launch Chinese Yuan futures to further strengthen the status of Dubai as a global trading centre.

 

 

Press Releases

ECB and the People’s Bank of China Successfully Test Bilateral Currency Swap Arrangement – ECB The tests serve to confirm operational readiness and are not a precursor to activation of a swap.

 

 

Industry Events