Top Headlines

Codes of Best Market Practice and Shared Global Principles (press release)
The eight foreign exchange committees in the major financial centres have released a revised “Global Preamble: Codes of Best Market Practice and Shared Global Principles” document, which was approved and endorsed by the eight committees at the annual global foreign exchange committees meeting, held in Tokyo on 23 March, and which updates the original version published in 2013.

Franc Fallout Sparks Prime Broking Shake-Out – Reuters
Losses from the Swiss franc’s surge in January have triggered a shake-up in the “prime broking” services that currency trading banks offer clients, raising costs and leaving some smaller players struggling to find feasible relationships.

Euro Hurt by Greek Uncertainty, Dollar Helped by Rate Outlook – Reuters
The euro fell on Monday, hurt by uncertainty over whether Greece and its international creditors will be able to strike a deal that will help Athens secure funding before it runs out of money by 20 April 20.

How Will the Machines Deal With a More ‘Event’ Ridden Environment? – Profit & Loss (subscription)
It’s going to be a very interesting few months in foreign exchange circles I suspect, not least for some management teams and particularly for the voice fraternity in our business.

Dollar Watchers Look to IMF – Wall Street Journal (subscription)
A roaring dollar rally could get a boost this coming week with the release of data that many investors expect to provide fresh evidence that central banks are embracing the greenback.

Japan PM, BOJ Chief Say Monetary Policy Not Targeting FX Market – Reuters
Japanese Prime Minister Shinzo Abe said on Monday that the government and the Bank of Japan are not conducting policy to target the currency market but are pursuing quantitative easing to achieve price stability.

CHF Cap Was ‘No Longer Sustainable’: SNB – Profit & Loss (free story)
The Swiss National Bank’s decision to pull its three-year old EUR/CHF peg on 15 January was because it was “no longer sustainable” against a backdrop of growing divergence between the US and the euro area, according to a senior representative of the bank.

Yuan Rises as PBOC’s Zhou Signals Room for Easing Amid Slowdown –Bloomberg
The yuan rose the most in almost a week amid speculation Chinese authorities will step up efforts to spur expansion in Asia’s largest economy.

Chile Well Positioned for US Rates Hike, Say Economists – Profit & Loss (free story)
Economists in Chile claim that the country is in a stronger position than some of the other emerging market nations to protect itself against the rising value of the dollar ahead of the US Federal Reserve’s expected interest rate increase later this year.

India’s New Venue-Based FX Dealing Systems Set to Launch on 6 April –LeapRate
India is preparing to invoke a new version of its national venue-based foreign exchange dealing systems, namely FX-Clear and FX-Swap platforms, which will operate with the Clearing Corporation of India (CCIL) as counterparty from the point of trade, concluded in the order matching mode.

Technology Accelerating FX Market Development in Mexico – Profit & Loss(free story)
Speakers at Profit & Loss’ “FX Growth Markets Mexico” conference emphasised the importance of technology as an enabler that will help accelerate the development of the local foreign exchange market.

Currency Traders’ Mobile Phones Under Scrutiny – The Times (subscription)
Police are studying the mobile phones of staff at a foreign exchange trading firm at the centre of a fraud and money laundering investigation

Regulatory News

End in Sight for Post-Crisis Banking Reform, Says Basel Head – Financial Times (subscription)
The avalanche of post-crisis banking regulation is coming to an end and most of the uncertainties weighing on the financial industry will be dealt with in the next year, Basel Committee secretary-general William Coen has said.

ECB, BOE to Guard Clearinghouse Stability After EU Ruling – Bloomberg
The European Central Bank and Bank of England took joint steps to ensure financial stability in the market for euro-denominated trades after the ECB this month lost a legal battle over the location of clearinghouses.

FCA Consults Market on MiFID II Implementation – Profit & Loss (free story)
The Financial Conduct Authority (FCA) has opened a consultation on implementing certain aspects of the revamped Markets in Financial Instruments Directive (MiFID II).

China Pledges ‘Radical’ Moves to Open Capital Account in 2015 – Forbes
Zhou Xiaochuan, the highly regarded governor of the People’s Bank of China, promised to reform China’s foreign exchange rules “relatively radically” this year.

FSB Reviews Work Plan Addressing Market Misconduct – Profit & Loss (free story)
The Financial Stability Board plans to further develop its work around addressing market misconduct, which it believes has the potential to create systemic risks by undermining trust in financial institutions and markets.

South Korea Allows Brokerages to Lend in Foreign Currencies – Reuters
South Korea is to allow top local brokerages to provide foreign currency loans to their clients under a long-anticipated deregulation drive in the sector, the finance ministry said on Monday.

Company News

JP Morgan Retains Number One Spot in Investment Banking But Revenues Slip – Reuters
The US bank JP Morgan retained its crown as the top performing investment bank in 2014, although its revenues fell 6%, new data showed on Friday.

Harris to Leave Nasdaq OMX – Profit & Loss (free story)
Phil Harris is leaving his position in New York as head of FX initiatives at Nasdaq OMX, according to market sources.

Saxo Bank Set to Launch Advanced New Mobile Platform in May This Year –LeapRate
Last week, Saxo Bank announced to its clients that it will be launching its new Saxo Trader Go trading platform, which will feature next generation technology including cross-device compatibility.

Market Savvy  

Stay Short AUDMXN With a Sombre Asia
BNP Paribas
Overnight base metals reached new lows, Japan’s industrial production report showed a large 3.4% month-on-month decline, and PBOC governor Zhou flagged concern over deflation and left the proverbial door open for further easing – all of which paint a sombre picture as far as developments in Asia are concerned. We continue to see downside risks for the AUD and have this this past week recommended a short AUDMXN trade recommendation.

Press Releases

CFTC Grants Order to ICE Clear Europe Permitting Portfolio Margining of Futures and Foreign Futures Contracts by Non-Clearing Member FCMs
The US Commodity Futures Trading Commission (CFTC) issued an order granting a request from ICE Clear Europe, a CFTC-registered derivatives clearing organisation, for an order pursuant to Section 4d(a) and (b) of the Commodity Exchange Act.

Blackwell Global Launches Institutional Services
Blackwell Global has added another technological advantage to its current offerings. The newly launched Blackwell Prime Solutions, boosted by its institutional platform, the Blackwell Trader Pro, offers enhanced liquidity and highly efficient trading opportunities to institutional clients.

Industry Events