Top Headlines

Citi, Barclays Close to Settling FX Lawsuit With Private Investors – Wall Street Journal (subscription)
Citi and Barclays are expected to pay as much as $800 million combined to settle a lawsuit with investors who say the banks manipulated foreign exchange rates, according to people close to the situation. The payments are likely to be more than double those made by JP Morgan and UBS, which have already settled their parts of the same suit.

CME Said to Be in Talks for GFI Tech Assets After Losing to BGC – Bloomberg
CME Group is pursuing GFI Group’s trading software units Fenics and Trayport after losing a takeover battle for the brokerage to BGC Partners.

US May Revoke Settlement Agreements in Currency Rigging Probes – Bloomberg
The US Justice Department is weighing whether evidence of wrongdoing in currency trading means banks violated old deals resolving probes into the rigging of benchmark interest rates.

Retail Currency Trading: How Safe Is It? – Institutional Investor
Losses and bankruptcies spawned by the Swiss currency’s surge left a number of questions about retail currency trading.

Dominant Dollar Makes 2015 Special for FX – Wall Street Journal (subscription)
The torpor that marked FX markets for a large part of 2014 has given way to big swings in 2015. That is making a real difference to returns. But it isn’t just investors who need to watch out; currency moves are clearly on the radar for policy makers. The focus is firmly on the surging US dollar and the falling euro as monetary policy diverges across the Atlantic.

Dollar Rally needs US Growth Underpin – Financial Times (subscription)
The dollar is on a tear, stirring memories among veteran currency strategists of great dollar bull runs of the past. Not since 1985 has there been a pace of growth to match the rise in the past 12 months of the dollar index, which measures the greenback against a basket of its peers.

Bank of England Sounds Alarm on Pound – Wall Street Journal (subscription)
Bank of England officials are worried that a strengthening pound risks prolonging a spell of ultra-low inflation in the UK, a development that could put a brake on interest rate increases expected to begin early next year.

Euro Fetching Less Than $1 Becomes Hot Call for Options Traders – Bloomberg
The foreign exchange market is starting to realise the euro’s tumble may not end at parity. There’s an almost one-in-four chance the euro will end the year below $1, options prices suggest, up from 5% at the end of 2014 and 11% on 1 March, before the European Central Bank started bond purchases that have sent the currency sliding.

Danish Central Bank Raps FX Speculators: ‘You Lose Twice’ – Reuters
Denmark’s central bank defiantly rapped speculators that have piled in to buy the national currency, telling them they have lost twice due to higher interest rates in the eurozone and because it will cost them to get out of the crown again.

Offshore Yuan Erases Discount to Onshore Amid Stimulus Optimism – Bloomberg
For the first time in almost six weeks the yuan cost about the same to buy in Hong Kong as it did in Shanghai, a sign global investors are turning less bearish.



Regulatory News

MAS and CAD to Jointly Investigate Market Misconduct Offences – Channel News Asia
Joint investigations will leverage on the Monetary Authority of Singapore’s insights in supervising the financial sector and the Commercial Affairs Department’s experience in combating financial crime, say both agencies.

ESMA Sees Increased Convergence in Automated Trading Supervision
The supervision of automated trading has become more convergent across the European Union, a recent review by the European Securities and Markets Authority has found. ESMA reviewed how the 30 national competent authorities across the EU have implemented ESMA guidelines on automated trading into their day-to-day supervision of trading platforms.



Company News

Citi Sues Two Former Goldman Sachs Partners Over $29 Million Swiss Franc Margin Call – Forbes
The sharp and unexpected rise of the Swiss franc in January resulted in big losses for hedge funds, investment banks and other currency speculators, even causing some hedge funds to shut down. Now, there is a lawsuit over a $29 million margin call that hit the joint family office of two former Goldman Sachs partners.

IG Group Discusses Handling of Swiss Franc Surge with FCA – Reuters
Britain’s financial watchdog has had some discussions with trading platform IG Group Holdings over how it handled the Swiss franc’s surge on 15 Janaury, IG chief executive officer Tim Howkins says.

Borsa Istanbul to Acquire LME’s Stake in LCH.Clearnet – Platts
The London Metal Exchange and Turkey’s Borsa Istanbul are entering into two agreements under which Borsa Istanbul will acquire the LME’s stake in clearing house LCH.Clearnet, and Borsa Istanbul, the LME and the LME’s parent company Hong Kong Exchanges and Clearing will partner on the dissemination of market data.

Alpari Looking to Establish New EU Licensed Subsidiary – Forex Magnates
Alpari is already looking to hire a managing director for a subsidiary to be based in the EU, targeting clients mainly from Eastern Europe, where the brand has been actively promoting its services in the past.



Market Savvy  

FOMC Preview: Yellen Fed Less Patient Than Market Expects?
Saxo Bank
Going into today’s Federal Open Market Committee meeting, we are once again in a situation where the bar for a hawkish surprise is very low. Remember that today’s meeting includes not only the release of the new monetary policy statement at 1800 GMT, but also the simultaneous release of the supplementary materials with economic and policy forecasts and then a press conference by Fed Chair Janet Yellen at 1830 GMT.



Press Releases

Thomson Reuters FX volumes, February 2015
Average daily volume for spot trading across Thomson Reuters’ platforms in February was $114 billion, down from $135 billion in January.

March 2015 Bank for International Settlements (BIS) Quarterly Review: A Wave of Further Easing
Largely unexpected, a wave of monetary easing over the past few months has taken centre stage in global financial markets. Amid plunging oil prices and rising foreign exchange tensions, central banks in both advanced and emerging market economies provided further stimulus.

Clearstream and ICE Clear Europe Launch Collaboration on Triparty Margin Collateral Management Service
The new collateral management partnership enables clearing members to use their assets held at Clearstream to manage their margin requirements.



Industry Events