Top Headlines

Bonuses of 18 RBS Employees on Hold Due to FX Review – Profit & Loss (subscription)
The Royal Bank of Scotland (RBS) has suspended the bonuses of 18 individuals pending the outcome of its review into the failings of its foreign exchange business, as per the UK regulatory watchdog’s instruction.

Yen’s Slump Seen Longest Since Gold Standard Ended: Currencies – Bloomberg
If your New Year’s wish is for more yen weakness, get ready to celebrate. After sliding more than 36% since the end of 2011, the median estimate of economists and strategists surveyed by Bloomberg is for an additional drop of almost 4% through the end of 2015 from 120.33 per dollar today in Tokyo.

Dollar Dominance to Push Currency Towards Parity With Euro – Telegraph
The dollar will continue to strengthen in 2015, pushing it close to parity with the euro for the first time in more than a decade, experts believe.

FX Industry Group Pushes Agenda – Markets Media
As the foreign exchange landscape transforms from an amorphous, largely phone-based market into one that mirrors other asset classes such as equities and fixed income, including electronic and algorithmic trading, and mandatory clearing of OTC derivatives, the global FX industry has launched a unified trade association, the Foreign Exchange Professionals Association (FXPA), with a cross-section of market participants.

China Extends Forwards, Swaps Trading to Three More Currencies – Bloomberg
China will allow trading in forwards and swaps between the yuan and three more currencies in an effort to reduce foreign exchange risks amid increased volatility in emerging markets.

Russia Says Ruble Crisis Over as Reserves Dive, Inflation Climbs – Reuters
Russia said on Thursday its currency crisis was over even though its forex reserves have plunged and annual inflation has climbed above 10%, adding to the problems facing the government as it fights its worst economic crisis since 1998.

Coming Soon, Easier Norms for Currency Derivatives Trading – Hindu Business Line
Market regulator Securities & Exchange Board of India (SEBI), in consultation with the Reserve Bank of India, is set to relax norms in the currency derivative market.



Regulatory News

Foreign Exchange Fixing Scandal Sees Bank Fines Soar to a Record £1.5 Billion – the Independent
The figure is almost three times last year’s total of £474.3 million, itself an all-time high for a financial regulator in the UK.



Company News

Citi Exiting Japan Retail Banking Business – Is CitiFX Pro Next? – LeapRate
Global banking giant Citigroup has been making certain changes in strategy recently, focusing internationally more on institutional rather than on retail business.



Market Savvy  

Greek Vote Weighs on Euro in Thin Trading
Saxo Bank
The Greek parliament will vote today on whether to approve newly appointed president Stavros Dimas. It doesn’t look like he has the votes, which will mean elections early next year and a likely Syriza victory.



Press Releases

DGCX Launches Three New Emerging Market Currency Futures
Expanding its suite of emerging market (EM) products, the Dubai Gold and Commodities Exchange (DGCX), announced the launch of three new currency contracts – Russian ruble futures, Korean won futures and South African rand futures. The new contracts went live on Friday, 26 December.

SGX’s Next-Generation Derivatives Trading and Clearing Platform to Use Nasdaq Technology
Singapore Exchange will upgrade its derivatives trading and clearing platforms to further strengthen Singapore’s market infrastructure and to support the strong volume growth in SGX’s derivatives business.



Industry Events