EBS-BrokerTec Joins FXPA
The Foreign Exchange Professionals Association (FXPA) is pleased to announce the addition of EBS-BrokerTec onto the Founders’ Council. “EBS has been a trusted partner to the global FX community for over 20 years, and it’s our pleasure to be a Founders Council member of FXPA. The group’s goal of ‘advancing a sound, liquid, transparent and competitive global currency market’ is achievable and we support them in these efforts,” says Gil Mandelzis, CEO of EBS-BrokerTec. The addition of EBS-BrokerTec brings to 21 the number of institutional members now part of FXPA.
To find out how you can support the FX industry through education, research and advocacy, visit our website at www.fxpa.org, become an institutional member, sign up for our newsletter, FXPA globalFXsource.
Banks Caught in FX Probe Braced for Legal Barrage –Financial Times (subscription)
Lawyers are rubbing their hands in anticipation of the barrage of civil lawsuits that they expect after the $5.6 billion settlements by six banks for allegedly defrauding their clients by manipulating foreign exchange markets.
Barclays, RBS Seen Facing $11 Billion More in Misconduct Costs – Bloomberg
Barclays and Royal Bank of Scotland Group, which were fined $3 billion on Wednesday for rigging currency markets, will have to set aside another 7 billion pounds for misconduct within two years, JP Morgan said.
Will the Latest Fines Change the Way FX is Traded? – Profit & Loss (free story)
In light of the “historic” fines meted out by US authorities to five global banks for conspiring to manipulate foreign exchange benchmarks such as the WMR Fix, will buy side market participants change the way they trade FX?
Banks Move to Clarify FX Practices – Profit & Loss (free story)
Following the fines levied against several banking institutions by UK and US authorities, the Royal Bank of Scotland and Barclays have published disclosure notices to their clients, explaining some of their FX practices and pricing.
Bank Fines Credited for Culture Shift – Financial Times (subscription)
Multibillion-dollar fines – such as the record settlement imposed on six banks over foreign exchange manipulation – are changing the culture of the City of London for the better, the UK’s financial watchdog has claimed. Martin Wheatley, the head of the Financial Conduct Authority said on Thursday that heavy fines were working, even though the $9 billion previously levied on banks for rigging Libor failed to deter similar behaviour among forex traders.
Investment Bank Earnings Up in First Quarter – FOW (subscription)
The world’s top banks had a strong first quarter with revenue driven by robust client activity, favourable market volatility and central bank activity, according to research firm Coalition. After a series of steady declines in recent years, fixed income, currency and commodities (FICC) revenue was up 2% year-on-year.
Investigators Probe $500 Trillion Interest Rate Swaps Market – Financial Times (subscription)
If banks thought Wednesday’s settlement over foreign exchange manipulation would help them draw a line under allegations of benchmark rigging, there was a nasty surprise buried in one of the settlements Barclays inked with a US derivatives regulator.
Market-Makers Tweak Algorithms Post-SNB Move – Operational Risk & Regulation (subscription)
Foreign exchange liquidity providers have been fine-tuning their pricing algorithms in the wake of the January 15 Swiss franc event. The trading shock has caused losses of hundreds of millions of dollars across the industry, as sharp moves in currency markets have continued in the months since.
Why Liquidity-Starved Markets Fear the Worst – Wall Street Journal (subscription)
Talk to almost any banker, investor or hedge fund manager today and one topic is likely to dominate the conversation. It isn’t Greece, or the US economy. It is the lack of liquidity in the markets and what this might mean for the world economy – and their businesses.
Fed Minutes Show Doubts About Strength of US Recovery – Financial times (subscription)
Doubts about the strength of the US recovery appeared to grow among Federal Reserve policy makers in their latest rate-setting meeting as soggy economic data further diminished the prospect of a rate rise in the summer.
Fischer Says Euro Area Can Survive Crisis – Financial Times (subscription)
Stanley Fischer, the vice chairman of the Fed’s Board of Governors, told a conference in Portugal that the odds were on the euro area enduring in essentially its present form, while cautioning that the outcome of the Greek crisis was still uncertain.