Clearing Houses Face Privacy Law Concerns – Risk Magazine (subscription)
Non-US clearing houses could face privacy law issues as a result of the trade reporting obligations placed on them by forthcoming US regulations – a clash that already affects some banks and prompted 12 national supervisors to write to the Financial Stability Board last year.
Big Banks Face Scrutiny Over Pricing of Metals – Wall Street Journal (subscription)
US officials are investigating at least 10 major banks for possible rigging of precious metals markets, even though European regulators dropped a similar probe after finding no evidence of wrongdoing.
FX Options Premiums Spike Despite Increased Vol, Trading Volumes – GlobalCapital (subscription)
Liquidity in the FX options market is being hampered as bid-ask spreads on implied volatility widen, despite a rise in vol and overall trading volumes, which has unexpectedly resulted in increased options premiums.
DOJ Requests Delay in FX Antitrust Litigation Case – Profit & Loss
The US Department of Justice has requested that a New York Federal Court halt discovery in an antitrust class action accusing major banks of manipulating the FX market, due to an ongoing grand jury investigation.
Currency Manager Calls for Swiss Franc Liquidity Inquest – Risk Magazine (subscription)
The collapse of foreign exchange liquidity during and after the huge Swiss franc move on January 15 caught market participants by surprise. Some are calling for an official enquiry.
Shining a Light on the Importance of Dark Pools – Financial Times (subscription)
As we enter the seventh year of a post-financial crisis world, it is hard to think of an area that has not suffered a knee-jerk reaction from politicians and regulators.
Dollar Inches Up on Yellen Hopes, Greek Breather – Reuters
The dollar was firmer on expectations that Fed chair Janet Yellen would keep the bank nudging towards US rate hikes.
Why There Are No Winners in the Global Currency War – Bloomberg
In a world where growth is scarce and prospects aren’t improving, an unspoken currency war has broken out. The short term pay-off might be a boost in exports, but there can be no real winners in the end.
Fretting About the Yuan – Wall Street Journal (subscription)
It’s worth savouring the irony that Beijing is intervening again in the currency market – this time to keep the yuan from falling. The currency has bumped along the bottom of its trading band for months, forcing the central bank to sell dollars and buy yuan to slow its decline.