Bank of England Official Sees Drift to More Exchange Trading on FX, Bonds – Reuters
More business in the world’s giant bond and currency markets may move onto exchanges as part of structural changes underway amid a host of new regulation and official reviews, the Bank of England’s director for markets strategy said on Wednesday.
UK Watchdog Says Status Quo Unacceptable in Forex Market – Reuters
Trading practices in currency markets must change and good cooperation seen from the industry bodes well for a “sensible” set of reforms, Britain’s Financial Conduct Authority (FCA) said on Wednesday.
One Week on from WM/R Change – Profit & Loss (free story)
So, one week one from the changes to the WM/Reuters methodology for establishing its benchmark FX fixes, has there been any major impact on the FX markets? The answer is simply no, yes, and it’s too early to tell.
Lord Grabiner Defends BoE Evidence in FX Enquiry – Profit & Loss (free story)
The UK’s Treasury Committee has released further evidence provided by Lord Grabiner following his defence last month of the former Bank of England chief dealer Martin Mallett, provided as part of the enquiry into whether the central bank had ignored early warnings of FX market malpractice.
Hong Kong Seeks to Rival Singapore as Corporate FX Hub – Reuters
In a bid to rival Singapore, Hong Kong is introducing sweeping tax measures aimed at making it a more attractive centre in Asia for global corporations to trade foreign exchange.
Currency Volatility Slides as Yellen Stays Flexible on Rate Move – Bloomberg
Currency volatility is poised for its biggest weekly drop since 2010 after Federal Reserve Chair Janet Yellen reiterated Wednesday that the central bank’s timetable for raising interest rates is flexible.
Banks Call for Compulsory Exams for FICC Professionals – Risk.net(subscription)
Better conduct could come from proven knowledge of markets and ethics, says banks.
Bond Investors Look to FX Derivatives as Portfolio Hedge – Global Capital(subscription)
Increases in FX volatility have the potential to erode returns and raise portfolio-level volatility in international multi-asset portfolios; therefore investors are looking at using FX forwards and options as a hedge to generate superior risk-adjusted returns.