Competitiveness Concerns Limit Ambition in UK’s Fair Markets Review – Reuters
To what extent can a $5 trillion a day market be fair and transparent when a third of the trading is done by just two banks?
UK Plans Global Fixed Income, Currencies and Commodities Rules – Financial Times
It is the morning after the night before. The night in question involved the port, pomp and pageantry that defines the annual Mansion House banquet, where City grandees exchange pleasantries with politicians and policy makers.
The Impact of FEMR: Industry Responds – Profit & Loss (free story)
Following yesterday’s swathe of responses from industry bodies to the UK’s Fair and Effective Markets Review (FEMR), vendors and market practitioners in the foreign exchange industry have started to voice their initial reactions to the recommendations.
Swiss Peg Debacle Leads to Cull in FX Prime Brokerage – Euromoney
A series of market disasters in recent years, culminating in the SNB’s decision to abandon its peg to the euro, have forced banks to reconsider their commitment to the prime brokerage business, leaving many smaller hedge funds and other clients in the cold – but a new generation of providers is taking their place, promising to revolutionise the business.
Asia Appeals for Exchanges as Regulators Get Bogged Down – Financial Times (subscription)
For delegates gathering at the annual International Derivatives Expo in London this week, there were two main items on the agenda; regulatory clarity and growth.
Gross Margin Move Unlikely, says EC’s Pearson – Risk Magazine (subscription)
A senior policy-maker has dismissed rumours the European Commission is considering moving to a two-day gross methodology for clearing house margin requirements. The US requires central counterparties to collect enough margin to cover potential losses over a one-day period for listed derivatives. The European rules call for CCPs to calculate margin over two days, but also allow clearing houses to net exposures.
Treasury Market Group Warns on High-Frequency Trading Dangers – Bloomberg
Wall Street executives finalised recommendations for guiding trading in the US Treasury market to ensure the safety and soundness of the world’s debt arena. The comments come amid a regulatory push to prevent cheating in financial markets, including the illegal bait-and-switch tactic known as spoofing.