Top Headlines

Deutsche Bank Faces Rate Rigging Fine From US, UK Watchdogs – Reuters
Deutsche Bank faced a multi-billion-dollar fine on Thursday, as British and US officials prepared to announce a legal settlement over alleged attempts at its London-based subsidiary to manipulate interest rate benchmarks.

Top Nordic Currency Trader Warns of QE-Driven Stock Surge – Bloomberg
An historic surge in stock markets that’s being fuelled by central bank cash injections is more a cause for concern than for jubilation. That’s according to Annika Falkengren, the chief executive officer of SEB, Scandinavia’s biggest foreign currency trading bank.

New Barclays Chairman Flags More Change to Meet Challenges – Reuters
New Barclays chairman John McFarlane said the British bank still faces formidable challenges and signalled his intention to accelerate its turnaround plan within an hour of taking charge. McFarlane took the helm after Thursday’s annual shareholder meeting, charged with overseeing its attempts to stamp out wrongdoing and improve performance, and immediately set out his priorities in a letter to shareholders.

Dollar Nurses Losses, Euro Supported by Greek Hopes – Reuters
The dollar nursed losses on Friday after taking a hit from underwhelming US economic data, while the euro found support from signs that cash-strapped Greece was making tentative progress toward securing fresh funding.

China’s Yuan Keeps Getting Bigger, But the Dollar is Not Giving Up the Throne – Forbes
The internationalisation of the Chinese yuan continues unabated. While it is unclear whether or not the new Asian Infrastructure Investment Bank will issue loans purely in the Chinese currency (its other investment bank project with the BRICS is dollar-based), one thing is certain: investment banks like HSBC are preparing for the day when more of their clients will want to settle trade in yuan.

Weak US Data, Dovish Fed Hopes Lift Asia FX Except Rupee – Reuters
Most emerging Asian currencies rose on Friday and posted weekly gains as a spate of disappointing US data raised hopes that the Federal Reserve may further delay an expected interest rate hike.

DE Shaw Sees $65 Million Swaps Margin Threshold as Exposure Cap – (subscription)
ISDA AGM: Hedge fund plans to share non-cleared swaps around to reduce trading costs. DE Shaw will share its swaps business around a larger number of banks in an attempt to limit costs relating to incoming margin rules, a lawyer at the hedge fund has said.

Brazilian Currency Climbs to Seven-Week High on Fed Rate Outlook –Bloomberg
Brazil’s real rose to a seven-week high as speculation the Federal Reserve isn’t in a hurry to raise US borrowing costs supported emerging market assets.

Regulatory News

Massad: SEFs Fear Retaliation If They End Name Give-Up –
ISDA AGM: CFTC chair is “very concerned” by claims that firms are being shut out of SEFs. A seemingly trivial stand-off over the disclosure of counterparty names may threaten one of the pillars of US swap trading rules – the provision of impartial access – the head of the US Commodity Futures Trading Commission (CFTC) has said.

Swift Business Forum Panel Slams EU Trade Reporting Rules – Banking Technology
New trade reporting requirements that would require banks and other capital markets participants to demonstrate best execution through data will impose massive costs and will not provide an equal level of benefit, according to senior executives speaking at the Swift Business Forum in London this week.

Company News

Citic Enters Acquisition Talks, Revives Plan to Boost M&A Staff – Bloomberg
Citic Securities is in talks to acquire overseas foreign exchange brokers, and has revived a plan to boost the number of its mergers and acquisitions bankers globally to at least 100 from 80, Beijing-based M&A head Zhang Jian said Thursday in a phone interview.

State Street Latest Winner From FX Volatility – Financial Times (subscription)
Add State Street to the list of winners from the foreign exchange volatility and diverging central bank policies of 2015 so far.

Interactive Brokers to Acquire Online Investing Marketplace Covestor –LeapRate
The deal will enable Interactive Brokers to beef up its offering to robo-adviser companies.

Market Savvy  

Is the USD Rally Over?
Markets are all about discounting the future. With USD the quantitative easing taper story is long gone and the markets have been anticipating a US interest rate rise for nearly two years now.

Press Releases

ISDA and aosphere to Enhance netalytics to Cover ISDA Clearing Opinions
The International Swaps and Derivatives Association (ISDA) announced that netalytics, an online netting analysis tool for ISDA members, will be enhanced to cover ISDA clearing opinions.

ASIC Asks FX Broker Advanced Markets to Clarify its AFS Licence
Following concerns raised by ASIC, Advanced Markets Ltd (Advanced Markets) has agreed to make changes to its website. The changes relate to statements that may have been misunderstood as implying that ASIC regulates all financial services provided by Advanced Markets, including those that are not carried on in Australia.

Industry Events