A new paper published by the Bank for International Settlements (BIS) asks the question, what would balance sheets look like if the borrowing through FX swaps and forwards were recorded on-balance sheet, as the functionally equivalent repo debt is?
The world’s central banks can’t ignore the growth in cryptocurrencies and may at some point have to consider whether it makes sense for them to issue their own digital currencies, according to the Bank for International Settlements.
- BIS Hones In on the Paradox at the Heart of Central Bank Cryptocurrencies – Financial Times (subscription)
HSBC Holdings code-named a $3.5 billion currency trade “Project Shine” and swore traders to secrecy to reassure its client it would get the best price.
The dollar hit an eight-week high against the yen, supported by a rise in US Treasury yields, as traders eyed a Federal Reserve meeting starting the next day for clues on whether interest rates could rise again by year-end.
Sterling hit a 15-month high against the dollar before retreating a notch as investors wound back some of last week’s bets on a Bank of England rate rise ahead of a speech by the central bank’s governor Mark Carney.
- Sterling Vulnerable as May Poised to Outline Brexit Strategy – Bloomberg
- British Pound Logs Best Week Since 2009 – Wall Street Journal (subscription)
HSBC has conceded “defeat” on its call for a drop in the pound to $1.20, saying that the currency “has happily ignored the political intrigue of Brexit throughout 2017.”
BNP Paribas Asset Management, Amundi and Fidelity International are seeing opportunities in betting on a weakening euro to profit from attractive carry in emerging-market currencies.
The intriguing aspect is that each national central bank in the euro area can borrow from – or lend to – the rest of the system through the Target2 network.
This 25th anniversary highlights how little market behaviour has really changed.
The yuan’s surge this year is proving a double-edged sword, risking hurting the nation’s exports even while boosting the chances of currency and capital control reforms.
It remains fashionable to deride the famous quote from New York Yankees’ legend Yogi Berra who once said, “It’s déjà vu all over again”, but in financial markets’ circles the admittedly mangled aphorism has value because technical analysis is very much the study of repeat events and economists expend much energy talking about an economic cycle.
More than 500 are already registered for Profit & Loss Forex Network Chicago, the biggest two-day FX conference in the industry.
ECB Supervisory Board chair wants European authorities to take tougher line on banking regulations.
The European Union wants to centralize market supervision and make banks pay for it, the bloc’s financial services chief said, signaling how it will seek to regroup after Britain leaves.
Job openings at US central bank give president the option to reshape it.
The 10 European Union countries still plotting a tax on financial transactions tied the proposal’s fate to the outcome of the Brexit negotiations, pushing any decision on the six-year-old plan even farther into the indefinite future.
The US Securities and Exchange Commission warned the industry in July that if these tokens are effectively securities such as stocks or bonds, they must be registered with the regulator.
Far-reaching rules will have a big impact on everything from banks to brokers.
As UK Prime Minster Theresa May prepares to relaunch her Brexit strategy, global banking bosses meeting nearly 7,000 miles away from London are drawing their own road maps in the event she fails.
Citizens Bank and SunTrust Bank have been expanding and investing more in their FX platforms and talent.
CME Group will no longer clear credit default swaps, ceding ground to rival Intercontinental Exchange in a business established after the financial crisis.
China’s clampdown on cryptocurrencies and the subsequent trading halts on a number of crypto exchanges have caught hundreds of mainland investors unaware and unprepared, driving some entrepreneurs to seek alternative listing of their tokens in Hong Kong to raise funds.
China’s yuan edged up against the US dollar, following the central bank’s fixing of a slightly firmer midpoint.
And we’re back. It looked on Friday as though the much-discussed bitcoin bubble was bursting spectacularly, with the currency sliding below $3,000 – now it’s back to almost $4,000.