ESMA Scraps Mandatory Clearing of NDFs for Now

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FXPA Elections for First Permanent Board Set for 10 Feb
The Foreign Exchange Professionals Association (FXPA) will hold elections for its first permanent Board of Directors and Officers on Feb 10. FXPA, which launched Sept 25, 2014, now has 18 members representing the diversity of participants in the institutional FX market. To find out how you can support the FX industry through education, research and advocacy, visit our website at www.fxpa.wpengine.com, become an institutional member, and sign up for our newsletter, FXPA globalFXsource.

ESMA Scraps Mandatory Clearing of NDFs for Now – Profit & Loss (free story)
The European Securities and Markets Authority (ESMA) will not immediately be proposing a clearing mandate for non-deliverable forwards (NDFs), following responses it received after issuing a consultation paper on a potential clearing obligation for NDF products in October 2014.

Euro Edges Up After Sinking on ECB Move on Greece – Reuters
The euro inched up on Thursday on strong German data, clawing back some of the ground it lost the previous day after the European Central Bank said it would no longer accept Greek bonds in return for funding.

FICC Research Set for Shake-Up – Financial News (subscription)
It’s not broken. But the European Union is going to fix it anyway. Rules designed to end conflicts of interest in equities research are set to have a spill over impact on research into bonds and currencies.

FX Volumes Remain Strong in January, Apart from Russia – Profit & Loss (free story)
Initial foreign exchange volume reports show greater market activity in the first month of 2015, which saw one of the most volatile trading days in recent history as a result of the Swiss National Bank’s sudden removal of its EUR/CHF cap on 15 January.

Regulatory News

Icap to Appeal Against €14.9 Million Rigging Fine – Profit & Loss (free story)
Icap has reacted angrily to a fine from the European Commission (EC) for its alleged role in facilitating several cartels involved in setting benchmark interest rates in the Japanese yen.

Federal Court Orders US Bank National Association to Pay $18 Million to Peregrine Customers
US Bank held the Peregrine Financial Group customer segregated funds account that Russell Wasendorf, Senior used to misappropriate customer funds.

FIA Cleared Swaps Operations Committee Clearing Member Recommendations for an Efficient Swap Client Clearing Model
FIA believes that these proposed practices will help facilitate the growth of the industry in a manner consistent with existing regulatory guidance. FIA has been involved in an ongoing dialogue concerning operational flow of swap execution facility (SEF) trades with a variety of market participants and with the Commodity Futures Trading Commission (CFTC).

Company News

BGC Partners Introduces Indian Rupee NDF on BGC Trader Platform –LeapRate
BGC Partners adds the Indian rupee non-deliverable forward to its integrated voice and electronic price execution platform for the inter-bank and broker community.

CME Group to Close Most Open Outcry Futures Trading in Chicago and New York by July; Most Options Markets to Remain Open
As open outcry futures trading has fallen to just one percent of the company’s total futures volume, CME Group today announced it will close most of its futures trading pits in Chicago and New York by 2 July, 2015.

Why BATS Global Markets Got Into FX by Acquiring KCG Hotspot – ForexMagnates
In a move that confirmed the intention of BATS Global Markets to expand its presence outside of the global equity markets, the company has recently announced a strategic move buying the Hotspot platform from KCG Holdings for $365 million in cash.

JP Morgan Said to Suspend Two Senior FX Salespeople on Expenses –Bloomberg
JP Morgan Chase suspended two senior foreign exchange salespeople because of client-related expenses, said a person with knowledge of the matter.

Average Daily FX Volumes a Steady 51,000 Contracts at ICE in January –LeapRate
Following on from December’s healthy 53,000 contracts on average per day, the company has begun the year with steady performance, as January’s average daily FX volume stands at 51,000 contracts.

Market Savvy  

EUR Sells Off on Greek News, but Policy Divergence Will be the Driver of a Sustained Move Lower
BNP Paribas
Headlines that the ECB would no longer accept Greek bonds as collateral in its repo operations, noting that it was no longer possible to assume a successful conclusion of the Greek program review, have driven the EUR sharply lower.

Press Releases

Former US Representative Jack Kingston Joins Squire Patton Boggs
Squire Patton Boggs is pleased to announce that former US Representative Jack Kingston (R-GA) has joined the firm’s public policy practice as a principal in the Washington, DC office.

Moscow Exchange Recommends Candidates for Supervisory Board
The Moscow Exchange AGM will be held in late April 2015. The AGM agenda will include election of a new supervisory board comprising 15 directors. The supervisory board will set the date and the full agenda of the AGM at a meeting in the beginning of March.

Aite Group Trade Surveillance and Monitoring Technology Report
In part one of its trade surveillance and compliance series, Aite Group highlights the demand for enhanced analytics functionality and expansion of coverage across all asset classes and geographies but also notes that no single player in the trade compliance space currently provides every part of the desired coverage.

Industry Events